Hospitals/systems may be considering the pro’s and con’s of growing their service lines, even as they grapple with cost reduction strategies. Experts have noted the many benefits including increased patient volumes, improved health outcomes, increased market share and improved physician loyalty. If hospitals/systems focus on high-value service lines, a key benefit would be a significant return on investment and financial growth.
Objectives of high-value service line growth include:
Optimizing limited resources. By focusing on specific services lines that show the greatest growth potential, hospitals/systems can allocate resources to achieve the greatest effect in driving revenue. The best candidates for growth potential would be identified. Then, through use of data analytics, specific strategies could be developed to improve and market the service line.
Driving patient satisfaction. Most U.S. cities have multiple hospitals vying for “healthcare provider of choice” for the community. To compete effectively, hospitals/systems should have effective, even aggressive strategies for attracting the consumers they want and providing them “with an exemplary experience.” Patients want “prompt service tailored precisely to their specific needs, with personalized customer service.” (“How to Grow High-Value Service Lines Effectively,” hfm Magazine, July 2018)
Healthcare organizations that achieve high rates of patient satisfaction realize financial benefits, according to a 2016 study by Deloitte. The authors reported that hospitals whose patients rate their experience as “excellent” have higher profitability than those with lower ratings. (Engaging with Tomorrow’s Patients: The New Health Care Customer, Deloitte, 2016)
Achieving lifelong relationships with patients. Marketing experts note that it’s costlier to acquire new customers than retain them. Patients who remain involved with a healthcare organization over long periods of time are for all intents and purposes repeat customers. (“How to Grow High-Value Service Lines Effectively,” hfm Magazine, July 2018)
Having a reputation for service-line excellence is one of the best ways to foster patient loyalty. Expertise in high-value fields often is the initial draw for patients. It creates the opportunities for the organization to engage patients and, through service excellence, high satisfaction that ensures they will continue to bring business into the organization. (“How to Grow High-Value Service Lines Effectively,” hfm Magazine, July 2018)
The Volume to Value Paradox advanced Quality course, featuring Nate Kaufman, Marian Jennings and Dan Grauman, is in your library. These experts discuss their perspectives of moving from volume to value, the pitfalls to avoid, how to involve physicians, the impact of consolidation and scale on value and the overall challenges of inserting value into the reimbursement formula.
For a complete list of iProtean, now part of Veralon courses, click here.
For more information about iProtean, now part of Veralon, click here.