How Hospitals can Boost Their Profits While Providing Value in 2017

How Hospitals can Boost Their Profits While Providing Value in 2017

Introduction

Here we will break down different ways how hospitals can improve their profitability. Things like patient satisfaction, reduction of readmission rates and other unnecessary testings’ are just a few of them. Smart investment, like in techniques and worker education are new and fresh ideas, what hospitals are trying to implement more and more. Let’s take a deeper look…

hospital

A satisfied customer is the best business strategy of all. /Michael LeBoeuf/

First things first – boosting patient satisfaction should be number one priority, no matter in what Business or industry you are working in. To have a constant customer flow, you must satisfy them, so they would be motivated and happy to come and use your service again.

If patients are satisfied throughout all aspects of their healthcare experience, then most likely they will return to the iconhospital that provided them with this service. Moreover, higher margins are associated with higher patient satisfaction. Hospitals who paid more attention to their patients and gave a superior experience earned bigger net margins that the other hospitals. These margins were 50% higher, compared to other hospitals who provided average customer experience and focused less on their patients.

Peer pressure and social norms are powerful influences on behaviour, and they are classic excuses. /Andrew Lansley/

Reducing readmissions is another way how hospitals can boost their profits. Readmissions can hit the hospitals pocket pretty hard. Additionally, it should be in a hospital own interest to reduce the number of readmissions they are providing. A lot of people may not like this fact, in order for hospitals to increase their profits, but this strategy is being implemented more and more nowadays.

 

As the Centre for Healthcare Quality & Payment Reform has found out, “15-25 percent of people who are discharged from the hospital will be readmitted to the hospital within 30 days or less, and that many of these readmissions are preventable.”

And this can be done by data-driven changes across the full care system. Obtaining data on patients and after that – hosptlanalyzing the data would reduce readmission patients. Another way how to prevent readmissions is by providing follow-up care. After patient treatment, hospitals should still give these patients their attention within the next weeks and months, so they can do the treatment properly at their homes, and not by coming back to the hospital. As simple as that.

Civilization is the limitless multiplication of unnecessary necessities. /Mark Twain/

It is estimated, that testing alone has wasted up to $5 billion each year. And a lot of professionals and workers in this field agrees that unnecessary procedures and tests are a serious problem in the healthcare system. How can this be done?

Spending more time and talking to patients is one of the solutions. Moreover, some patients ask specialists to administer their tests on them that they don’t need actually. Additionally, if the professional haven’t gathered and obtained enough information about the patient, he or she may believe that the patient indeed needs a test. In that way, thinking – the easiest and more efficient way to solve this problem – let’s make a test on this patient. Improved communication between patients and physicians can lead to a reduction in unnecessary tests.

You have to be constantly reinventing yourself and investing in the future. / Reid Hoffman/

Investing in the future is the smartest thing to do. We read and we talk about upcoming trends and new innovations within the healthcare industry. But are the hospitals and other organizations ready for this new technology boom? Is the staff trained to use and understand newest machines and data analytics? Investment in health IT systems to monitor utilization should be the smartest thing to do. Yes, in order to do that, the hospital must have a good amount of money. But think about benefits received from these investments.

Using effective technologies is another way how hospitals can improve their profits and run efficiently. Some hospitals are using different support systems to achieve positive financial outcomes. What these systems do is overseeing laboratory utilization. Decreasing the number of unnecessary tests meantime keeping patient care quality is another thing that these systems are able to track.

Communication – the human connection – is the key to personal and career success. /Paul J. Meyer/

What we can learn and understand from this article – communication has become the link between efficiency and the effectiveness in the healthcare industry. Focusing on a communication strategy and channels is becoming widely used. As the healthcare moves from the hospital to the physician’s office, patient experience and expectations as a value are increasing. And it is not just a written text. It drives outcomes – 70% of deaths and injuries in the hospitals can be addressed to communication failures.

Lack of capital is one of the obstacles in order to improve communication in the company or organization. Changes in communication strategy can have an enormous impact and a positive effect. It is a matter of will and a matter of “know-how” in order to use this strategy properly.

Having happy and satisfied customers = bigger profit.

…as simple as that.

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