AuroraCare: Cutting Specialist Referral Costs: case interview walkthrough

What this case tests

This case tests your ability to analyze operational processes and identify inefficiencies. You will need to demonstrate:

• Strong quantitative analysis skills.
• The ability to stress-test assumptions.
• Logical reasoning in proposing solutions.
• Understanding of healthcare operations.
• Skills in cost-benefit analysis.
• Effective communication of your findings.
• Creativity in problem-solving.

How to solve

To approach the AuroraCare case, follow these steps:

1. Understand the current referral process: Gather information on how referrals are currently managed.

2. Identify key metrics: Focus on costs associated with referrals, including time and resources.

3. Analyze data: Use quantitative methods to evaluate the referral costs and identify trends.

4. Propose solutions: Suggest operational changes that could reduce costs while maintaining quality care.

5. Prepare for questions: Anticipate potential challenges to your recommendations and prepare responses.

Quant checks to run

During your analysis, ensure you run the following quantitative checks:

• Calculate the average cost per referral.
• Assess the volume of referrals and their outcomes.
• Evaluate the time taken for each referral process.
• Compare costs against industry benchmarks.
• Analyze the impact of proposed changes on overall costs.
• Test assumptions with sensitivity analysis.
• Validate findings with real-world data where possible.

Common mistakes

Avoid these common pitfalls:

• Failing to clarify the problem statement.
• Overlooking key metrics that impact costs.
• Making assumptions without data support.
• Ignoring the implications of proposed changes.
• Not preparing for counterarguments during discussions.
• Rushing through the analysis without thorough checks.
• Neglecting to communicate findings clearly.

Practice drills

To prepare effectively, engage in the following drills:

• Conduct mock interviews focusing on operational redesign cases.
• Analyze past case studies related to healthcare operations.
• Practice presenting your findings to peers for feedback.
• Work on quantitative problems to enhance your analytical skills.
• Review common healthcare metrics and their implications.
• Simulate stress-testing assumptions with different scenarios.
• Discuss potential solutions with a study group to refine your ideas.