A new white paper from The Beryl Institute contends improving patient experience has financial implications that reach beyond reimbursement dollars, performance pay and compensation tied to outcomes. The paper examines the return on providing excellent service from financial, marketing and clinical perspectives and offers research and justification for investing in patient experience efforts to achieve valuable returns.
• From the financial perspective, satisfied patients lead to higher profitability. In a 2008 J.D. Power study, it was discovered that hospitals scoring in the top quartile in satisfaction had over two times the margin of those at the bottom. These findings were supported by the 2008 Press Ganey paper, Return on Investment: Increasing Profitability by Improving Patient Satisfaction. The paper revealed that when hospitals were ranked by profitability into quartiles, the most profitable hospitals had the highest average satisfaction scores.
• From the marketing perspective, look no further than the power of word of mouth. In her 2004 article, Jacqueline Zimowski shared that a satisfied patient tells three other people about a positive experience. In contrast, a dissatisfied patient tells up to 25 others about a negative experience. The issue worsens, as for every patient that complains, there are 20 other dissatisfied patients that do not. And of those dissatisfied patients that don’t complain, only 1 in 10 will return. When you run the numbers, for every complaint you hear, you could be losing a potential 18 patients. In essence by not focusing on experience, hospitals and other healthcare providers are potentially driving patients away.
• From the clinical perspective, healthcare providers must be clear to recognize that experience and quality are critically interwoven aspects of overall care. Patient Experience is about ensuring patients leave better than when they arrived (as often as possible). This was exemplified in a powerful way in the 2011 study by Boulding et al. They examined quality factors and satisfaction factors in relationship to readmission rates within 30 days of discharge. The finding was surprising. The HCAHPS scores, i.e. experience outcomes, were reliable and even more predictable indicators of readmissions than quality indicators.
The paper cites multiple studies and publications offering healthcare organizations an evidence-based case for improving the service encounter for the patients, families and communities they serve.
The complete white paper, titled "Return on Service: The Financial Implications of Patient Experience," is available for download at www.theberylinstitute.org.
The Role of Cultural Competence in Delivering Positive Patient Experiences: 4 Focal Points
• From the financial perspective, satisfied patients lead to higher profitability. In a 2008 J.D. Power study, it was discovered that hospitals scoring in the top quartile in satisfaction had over two times the margin of those at the bottom. These findings were supported by the 2008 Press Ganey paper, Return on Investment: Increasing Profitability by Improving Patient Satisfaction. The paper revealed that when hospitals were ranked by profitability into quartiles, the most profitable hospitals had the highest average satisfaction scores.
• From the marketing perspective, look no further than the power of word of mouth. In her 2004 article, Jacqueline Zimowski shared that a satisfied patient tells three other people about a positive experience. In contrast, a dissatisfied patient tells up to 25 others about a negative experience. The issue worsens, as for every patient that complains, there are 20 other dissatisfied patients that do not. And of those dissatisfied patients that don’t complain, only 1 in 10 will return. When you run the numbers, for every complaint you hear, you could be losing a potential 18 patients. In essence by not focusing on experience, hospitals and other healthcare providers are potentially driving patients away.
• From the clinical perspective, healthcare providers must be clear to recognize that experience and quality are critically interwoven aspects of overall care. Patient Experience is about ensuring patients leave better than when they arrived (as often as possible). This was exemplified in a powerful way in the 2011 study by Boulding et al. They examined quality factors and satisfaction factors in relationship to readmission rates within 30 days of discharge. The finding was surprising. The HCAHPS scores, i.e. experience outcomes, were reliable and even more predictable indicators of readmissions than quality indicators.
The paper cites multiple studies and publications offering healthcare organizations an evidence-based case for improving the service encounter for the patients, families and communities they serve.
The complete white paper, titled "Return on Service: The Financial Implications of Patient Experience," is available for download at www.theberylinstitute.org.
Related Articles From The Beryl Institute:
3 Ways to Create PEAK Patient ExperienceThe Role of Cultural Competence in Delivering Positive Patient Experiences: 4 Focal Points