Non-urban, freestanding hospitals around the country are considering consolidation with larger providers as a means for improving efficiency, accessing capital and adapting to changes under health reform that may make hospital finances even tighter. However, independent hospitals still have a place in today's healthcare market, says Mickey Bilbrey, vice president of Eastern operations for Quorum Health Resources (QHR). "We have reason to believe that many hospitals can remain independent and have influence over the type and quality of services they provide their communities," he says. He discusses the benefits and best practices for freestanding hospitals to remain independent.
1. Quality healthcare in rural areas. Rural hospitals are often the only access point for primary care and medical facilities in the community. Without these hospitals, patients would have to drive several miles to another hospital in a more urban area. "Maintaining quality healthcare sources in rural areas is important to the healthcare and economics of the community," says Mr. Bilbrey. "Providing quality primary care is often easier and more efficient when it is closer to where people live."
2. Community control of healthcare facilities. Many communities want to have control over the services they provide and the medical facilities located in their area. "Having independent, freestanding, community-owned and governed healthcare services is very important to some rural communities and towns," says Mr. Bilbrey. "This governance or control comes in lots of forms, such as credentialing a medical staff, deciding what types of services they need and making sure there are quality services for the people who work and live in the community."
1. Be a good listener. Hospital executives should listen to the medical staff and their community members to assess what services are needed most at the hospital. "Talking and listening with the medical staff is important because they work with patients from the community every day," says Mr. Bilbrey. "Also, listen to board members because they are out there in the community and they can be a voice of what they are hearing." To best collect this information, create a forum for the community to easily interact with the hospital.
2. Devise a strategic plan. Once you've gathered a great deal of information about the needs of the community, develop a strategic plan for enhancing or implementing needed services. "Every hospital needs to have a very thorough and thoughtful strategic plan that examines the environmental factors that a hospital might be facing in any given market," says Mr. Bilbrey. "Listen to the medical staff and professionals because they know what is sustainable from a clinical and financial standpoint."
3. Recruit and retain quality medical staff. A hospital service line or program won't be successful unless you have quality physicians and medical staff in place. Figure out where services in your community may be lacking and focus on recruiting specialists in that area, says Mr. Bilbrey. However, don't forget about the outstanding physicians and staff you already have. Make sure to take the necessary steps to retain these quality professionals.
4. Enter into clinical relationships with other providers. If your hospital continues to struggle, consider entering into a clinical relationship with other providers in your community. These relationships can help your hospital with recruiting and bring in additional services to grow your market share. "You can remain independent, but work with other providers in clinical affiliations," says Mr. Bilbrey. "However, if there are significant capital needs that a community just can't meet, they might need to examine or explore some type of consolidation with a provider."
Hospital management companies, such as QHR, can help facilitate these types of relationships on a grander scale. "We can give them an outside view and share with them best practices of our other hospital clients," says Mr. Bilbrey. "We also bring a view of the hospital's operations or strategy, so they have a better chance of coping with a volatile marketplace."
5. Consider a management partner that brings proven solutions to improving both clinical and financial operating performance. "In addition to ongoing management support, QHR provides its hospital clients with regional teams to provide operational and financial guidance, comprehensive consulting resources, group purchasing power and opportunities for continued education," Mr. Bilbrey says. "We help ensure that operating best practices are implemented in our client hospitals every day; they support operational discipline and improved financial performance – allowing the hospitals to remain independent."
6. Remember that one solution doesn't fit all. What might work for one hospital might not work in another, which is why it's important to explore a broad number of options for increasing efficiency and profitability. "No one strategy is a perfect solution for everybody," says Mr. Bilbrey. "What might be en vogue for one community is not best for another. You have to take a balanced approach and ask critical questions based on the hospital's and community's needs."
Learn more about QHR.
Read other expertise from QHR:
- Optimizing the Revenue Cycle in Uncertain Financial Times: What Every Hospital Trustee Needs to Know
- Federal Qualified Health Center: Threat or Collaborative Opportunity?
- Considerations for Acquiring or Affiliating With Another Hospital
Benefits
1. Quality healthcare in rural areas. Rural hospitals are often the only access point for primary care and medical facilities in the community. Without these hospitals, patients would have to drive several miles to another hospital in a more urban area. "Maintaining quality healthcare sources in rural areas is important to the healthcare and economics of the community," says Mr. Bilbrey. "Providing quality primary care is often easier and more efficient when it is closer to where people live."
2. Community control of healthcare facilities. Many communities want to have control over the services they provide and the medical facilities located in their area. "Having independent, freestanding, community-owned and governed healthcare services is very important to some rural communities and towns," says Mr. Bilbrey. "This governance or control comes in lots of forms, such as credentialing a medical staff, deciding what types of services they need and making sure there are quality services for the people who work and live in the community."
Strategies to remain independent
1. Be a good listener. Hospital executives should listen to the medical staff and their community members to assess what services are needed most at the hospital. "Talking and listening with the medical staff is important because they work with patients from the community every day," says Mr. Bilbrey. "Also, listen to board members because they are out there in the community and they can be a voice of what they are hearing." To best collect this information, create a forum for the community to easily interact with the hospital.
2. Devise a strategic plan. Once you've gathered a great deal of information about the needs of the community, develop a strategic plan for enhancing or implementing needed services. "Every hospital needs to have a very thorough and thoughtful strategic plan that examines the environmental factors that a hospital might be facing in any given market," says Mr. Bilbrey. "Listen to the medical staff and professionals because they know what is sustainable from a clinical and financial standpoint."
3. Recruit and retain quality medical staff. A hospital service line or program won't be successful unless you have quality physicians and medical staff in place. Figure out where services in your community may be lacking and focus on recruiting specialists in that area, says Mr. Bilbrey. However, don't forget about the outstanding physicians and staff you already have. Make sure to take the necessary steps to retain these quality professionals.
4. Enter into clinical relationships with other providers. If your hospital continues to struggle, consider entering into a clinical relationship with other providers in your community. These relationships can help your hospital with recruiting and bring in additional services to grow your market share. "You can remain independent, but work with other providers in clinical affiliations," says Mr. Bilbrey. "However, if there are significant capital needs that a community just can't meet, they might need to examine or explore some type of consolidation with a provider."
Hospital management companies, such as QHR, can help facilitate these types of relationships on a grander scale. "We can give them an outside view and share with them best practices of our other hospital clients," says Mr. Bilbrey. "We also bring a view of the hospital's operations or strategy, so they have a better chance of coping with a volatile marketplace."
5. Consider a management partner that brings proven solutions to improving both clinical and financial operating performance. "In addition to ongoing management support, QHR provides its hospital clients with regional teams to provide operational and financial guidance, comprehensive consulting resources, group purchasing power and opportunities for continued education," Mr. Bilbrey says. "We help ensure that operating best practices are implemented in our client hospitals every day; they support operational discipline and improved financial performance – allowing the hospitals to remain independent."
6. Remember that one solution doesn't fit all. What might work for one hospital might not work in another, which is why it's important to explore a broad number of options for increasing efficiency and profitability. "No one strategy is a perfect solution for everybody," says Mr. Bilbrey. "What might be en vogue for one community is not best for another. You have to take a balanced approach and ask critical questions based on the hospital's and community's needs."
Learn more about QHR.
Read other expertise from QHR:
- Optimizing the Revenue Cycle in Uncertain Financial Times: What Every Hospital Trustee Needs to Know
- Federal Qualified Health Center: Threat or Collaborative Opportunity?
- Considerations for Acquiring or Affiliating With Another Hospital