This week, I focus my attention on Change Healthcare, which is a competitor company of the organization I have chosen to write about for my Assignments (United Health Group’s OptumInsight). Change Healthcare (NASDAQ: CHNG) is a leading independent healthcare technology company, focused on accelerating the transformation of the healthcare system through the power of the Change Healthcare Platform (Change Healthcare, 1). It provides data and analytics-driven solutions to improve clinical, financial, administrative, and patient engagement outcomes in the U.S. healthcare system (Optum, 2).
Which move did they use and why do you think they elected to use this move?
Change Healthcare used the winnning move that gave them market share advantage, enabled greater service and product capabilities and transitioned another organization from competitor to ally. I am referring to the game-winning move brought on by mergers and acquisitions (JWI, 3 ). This move proved quite effective for CHNG because by merging with OptumInsight, it enhanced, with insights drawn from billions of claims transactions using Change Healthcare’s intelligent health care network, combined with Optum’s advanced data analytics which will enable faster and more in-depth analysis leading to better decisions when it comes to insurance underwriting and claims processing. More importantly, Change Healthcare brings widely adopted technology for integrating evidence-based clinical criteria directly into the clinician’s workflow, while Optum’s clinical analytics expertise and Individual Health Record can strengthen the evidence base needed to deliver effective clinical decision support at the point of care.
How effective was this move in establishing meaningful differentiation? Support your response with references to this week’s materials including Chapter 9 from Sherman.
The move was quite effective in establishing meaningful differentiation. For one, it heightened the level of perceptual mapping (Sherman, 4) in the minds of Change Healthcare’s client base. By merging with OptumInsight, the reputation of being a stronger predictor organization of health care scenarios related to claims processing, revenue cycle management and health risk probabilities had gotten more positive, front-and-center attention, thereby increasing sales for both firms. Secondly, both companies have greater chances of increased influence over how their respective products are perceived due to the added service features they can now provide as a merged organization.