Here are four tips for strong strategic growth of hospitals in the future.
1. Move from growth plan strategies to effectiveness strategies. When devising strategic plans, hospitals should now focus more on effectiveness strategies than growth strategies, says Luke Peterson, a National Director of Kurt Salmon's Healthcare Strategy Group. "What we are seeing in the market is that effectiveness is critically important, along with growth," he says. "We anticipate some push-back to this change of focus, but we believe this is where the market is heading."
While growth plans are predominantly about external markets and volumes, effectiveness plans require the organization to look at its internal processes and value equations says Mr. Peterson. "It is no-longer simply about growing the top line," he says. "Finding ways to fundamentally change the care processes to improve quality, service and reduce costs require different approaches and information."
2. Focus on quality of care for marketing strategies. As the amount of transparency in hospital information grows, it has become more tenuous to assume large volume means high quality. In the past, large hospitals were assumed to have better quality than small community hospitals, and now that isn't always the case, says Mr. Peterson. "The hospital can be a small hospital that is really connected to the community, has strong customer service and is easy for surgeons to arrange operating room time," he says. "Or, the hospital has the huge infrastructure with research and high-level specialists. People are starting to look more closely at the outcome data and want hospitals, large and small, to prove that they have a better model."
Some community hospitals are taking advantage of HCAHPS scores and other quality outcomes to prove they provide superior care. "The big competitive aspect for the future will be how organizations use this information as an asset," he says. "Those who are able to mine quality data and use it with good market information will be the ones who win the market."
3. 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 Mickey Bilbrey, vice president of Eastern operations for Quorum Health Resources (QHR). "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."
4. Consider partnering with a BPO. When deciding on a Business Process Outsourcer, it's important to understand the strength of each company's balance sheet and compare their performance to others in the industry, according to a report from National Patient Account Services. A good BPO should focus on healthcare, have early-out services and use state-of-the-art technology to serve you.
Related Articles on Hospital Management:
From Nurse to CEO: Q&A With Marina del Rey CEO Fred Hunter
From Treating the Sick to Managing a Community Hospital: Hospitals' New Role in Managing Population Health
Leading Change With Vigor: 6 Questions and Answers for Hospital CEOs
1. Move from growth plan strategies to effectiveness strategies. When devising strategic plans, hospitals should now focus more on effectiveness strategies than growth strategies, says Luke Peterson, a National Director of Kurt Salmon's Healthcare Strategy Group. "What we are seeing in the market is that effectiveness is critically important, along with growth," he says. "We anticipate some push-back to this change of focus, but we believe this is where the market is heading."
While growth plans are predominantly about external markets and volumes, effectiveness plans require the organization to look at its internal processes and value equations says Mr. Peterson. "It is no-longer simply about growing the top line," he says. "Finding ways to fundamentally change the care processes to improve quality, service and reduce costs require different approaches and information."
2. Focus on quality of care for marketing strategies. As the amount of transparency in hospital information grows, it has become more tenuous to assume large volume means high quality. In the past, large hospitals were assumed to have better quality than small community hospitals, and now that isn't always the case, says Mr. Peterson. "The hospital can be a small hospital that is really connected to the community, has strong customer service and is easy for surgeons to arrange operating room time," he says. "Or, the hospital has the huge infrastructure with research and high-level specialists. People are starting to look more closely at the outcome data and want hospitals, large and small, to prove that they have a better model."
Some community hospitals are taking advantage of HCAHPS scores and other quality outcomes to prove they provide superior care. "The big competitive aspect for the future will be how organizations use this information as an asset," he says. "Those who are able to mine quality data and use it with good market information will be the ones who win the market."
3. 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 Mickey Bilbrey, vice president of Eastern operations for Quorum Health Resources (QHR). "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."
4. Consider partnering with a BPO. When deciding on a Business Process Outsourcer, it's important to understand the strength of each company's balance sheet and compare their performance to others in the industry, according to a report from National Patient Account Services. A good BPO should focus on healthcare, have early-out services and use state-of-the-art technology to serve you.
Related Articles on Hospital Management:
From Nurse to CEO: Q&A With Marina del Rey CEO Fred Hunter
From Treating the Sick to Managing a Community Hospital: Hospitals' New Role in Managing Population Health
Leading Change With Vigor: 6 Questions and Answers for Hospital CEOs