Our Value Commitment

Every service organization is ultimately judged by the value it delivers to its customers. ConcentricHealth strives to deliver 1+1>2 value for the consultants and clients we represent. Our success will be measured and judged by this standard of excellence.

Larry D. Seston, ConcentricHealth, President

The "Full- Service" Consulting Dilemma
Mitchell G. Galloway, MG&A, Inc., President

Full Service Consulting Firms (FSCFs) offer their healthcare clients a broad range of services under a single relationship umbrella. These firms have several things working to their advantage.

	First, the clients of FSCFs are able to access a deep bench of special expertise to help them solve their problems. These experts come together under the leadership of a partner with an on-going relationship with the client, ensuring continuity and a built-in familiarity with the clients’ situation.
	Second, the size of the FSCFs give them several advantages of scale not available to smaller competitors. These advantages include a pervasive distribution network (supplemented by the auditing arm of the accounting firms), the ability to invest in product development, and enough demand to keep highly specialized experts reasonably productive. In addition, they are able to train a steady flow of new consultants by mixing them into large, more experienced teams.
	Third, the resulting market position makes the FSCFs attractive to potential investors looking to buy access to their distribution channel or their market share.

While these firms have historically held a significant advantage, changes in the environment pose an emerging threat to their position. A large number of small independent consultants have entered the market. These experts have come from large firms and from clients that have downsized their management ranks.

This flood of talent into the market means that clients can now expect that their consultants will be well seasoned and implementation-oriented, making it less attractive to a client to be a training-ground for new consultants.

Changes in attitudes and technology have facilitated the growth of "virtual" organizations that can come together quickly to meet business challenges, often running circles around their larger, more conservative competitors. Clients like the value that these small flexible organizations bring to consulting engagements through their high level of expertise, personal service, low overhead, and "skin in the game."

Small, independent consulting firms have an opportunity to compete effectively with the FSCFs, but they face several challenges due to their small size.

	First, it is difficult to grow the business because investing in marketing activities necessarily decreases the time available to do the billed consulting. Since senior people are doing both, it is always a trade-off between current income and future growth.
	Second, it is difficult to fund the quality development work that keeps you ahead of your competition for the same reason. Development becomes deferrable work, ranking behind consulting and marketing activities.
	Third, small firms can't afford the supporting infrastructure that can make them more efficient.
	Last, small firms cannot attract investors because the owner is the business. It is much simpler to hire the consultant than buy the business. All of the scale benefits of combining a small firm with a larger, acquiring firm go to the acquiring firm.

An opportunity exists to combine the advantages of the larger FSCF's with the advantages of the smaller independent firms, avoiding the disadvantages of both. 

We believe ConcentricHealth will seize this opportunity.

We connect our partner consulting firms to a powerful distribution system, allowing them to grow their business through highly qualified leads complete with personal introductions.

We provide clients of our partner firms seamless access to a deep bench of "best of breed" consultants at "independent" prices, giving them exceptional consulting value.

We increase the competitiveness of our partner firms through linked development efforts, making their core products better through multi-disciplinary expertise.

We reduce the overhead burden of our partner firms by sharing infrastructure expenses.

We create equity value and liquidity for our partner firms without reducing their compensation or taking away their independence. This will attract potential investors and/or companies interested in acquiring consulting capabilities.

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