Hooper Holmes had razor-thin operating margins in the face of a difficult market for its core paramedical services. Hence, the company faced two major challenges. First, the company had to increase margins through a highly structured and sustainable cost-reduction effort. Second, the company needed to boost revenues through pricing realignment and the identification of growth opportunities beyond its core services.

Risk management; health care services

• Mid-sized company (approximately $320 million in revenues)
• 88% of 2005 sales generated through its Health Information Division
• Operations in both the United States and the United Kingdom

• Announced an expected 25% increase to U.S. gross profits