Strategic Diversification

As long-term care organizations pursue growth, many CEOs weigh the benefits of combining or affiliating with larger organizations. Many smaller stand-alone organizations are expected to combine with larger organizations to stay competitive, while mid-size organizations seek acquisitions or strategic affiliations.

While these strategies can certainly be effective, they can also prove limiting if a company only focuses on growth from a brick-and-mortar perspective. Other growth strategies, such as diversifying service lines, can present major opportunities if a company wants to expand at a broader level.

That said, determining how to shift service offerings can be challenging—requiring board members and senior leadership to think outside of the box and be comfortable stepping away from current understandings of how an organization operates.  More

by Amy Runge and Karl Rebay, Partners, Long-term Care Practice, Moss Adams