AuroraCare: Cutting Specialist Referral Costs: case interview walkthrough

What this case tests

This case tests your ability to analyze operational inefficiencies and develop strategies to reduce costs. You will need to demonstrate your quantitative skills and your capacity to make sound assumptions based on available data. Key areas of focus include:

• Understanding the referral process in healthcare.
• Identifying cost drivers associated with specialist referrals.
• Evaluating the impact of proposed changes on overall costs.

How to solve

To solve this case, follow a structured approach:

1. Define the problem: Clearly articulate the issue of high referral costs.

2. Gather data: Use any provided data to understand current costs and referral patterns.

3. Analyze costs: Break down costs by category, such as administrative expenses and specialist fees.

4. Identify solutions: Propose actionable strategies to reduce costs, such as:

5. Evaluate impact: Assess the potential savings and operational changes resulting from your recommendations.

• Streamlining the referral process.
• Negotiating better rates with specialists.
• Implementing a triage system to manage referrals more effectively.

Quant checks to run

During your analysis, ensure to run the following quant checks:

• Calculate the current average cost per referral.
• Estimate potential savings from each proposed solution.
• Assess the volume of referrals and how changes may impact patient care.
• Validate assumptions with sensitivity analysis to understand risk.

Common mistakes

Candidates often make several common mistakes, including:

• Failing to clearly define the problem before diving into analysis.
• Overlooking the importance of stakeholder impact when proposing solutions.
• Not validating assumptions with data, leading to flawed conclusions.
• Ignoring the operational feasibility of proposed changes.

Practice drills

To prepare effectively, consider these practice drills:

• Simulate case interviews focusing on operations and cost reduction.
• Review past case studies related to healthcare cost management.
• Work on quantitative problems that require quick calculations and assumptions.
• Engage in peer discussions to refine your problem-solving approach.
• Practice articulating your thought process clearly and concisely.
• Time yourself while solving cases to improve efficiency.
• Seek feedback on your solutions to identify areas for improvement.