It is common for all the hospitals to struggle with profitability at one point or another. With the evolution of the healthcare industry, hospitals all over the world are looking for new and innovative ways to lower their operational costs, boost revenue collection and raise net profitability. If your healthcare business is also going through some Tough Economic Times, you have landed on the right page. Here, we have listed the top seven practices that will help you increase your hospital’s profitability significantly. Read ahead to discover the secret -
- Introduce Promising New Services - The hospital must go hand in hand with technology to introduce new services. This will create a reputation for the hospital and make it a reliable and trustworthy organisation for the patients. For instance, the hospital must avoid unnecessarily long waits for the patients to collect their laboratory results. Effective management of staff to make sure no Patient feels unattended to should be a priority. Every single employee right from the guy working in the in-office pharmacy to the head of the department must be committed to patient satisfaction and work as a team to give the patient a world-class treatment experience.
- Revise The IT Strategy - The hospitals can also boost the profit by utilising effective technologies. Systems like clinical decision support systems help the hospital achieve positive financial outcomes and let the providers oversee laboratory utilisation. These systems are also found useful by the providers to significantly decrease the number of unnecessary tests without compromising on patient care quality. These systems can also help reduce the number of errors committed during the prescription placement phase of healthcare.
- Using these systems, funds spent on reordering the correct prescriptions are saved. Apart from that a lot of applications like Epic App Orchard have been developed for the betterment of healthcare. This is an innovative platform where developers can learn about Epic's APIs. Moreover, they can list their own applications for Epic community members to explore and access. The app has also enabled ZocDoc for patient self-scheduling, thus considerably reducing the expenditure of hospital’s time and energy.
- Reduce Readmissions - High readmission rates are expensive to the hospital. The hospital must try to reduce the number of readmissions to as great an extent as possible. This can be achieved through data-driven changes across the full continuum of care. The hospital administration must try to obtain as much data on the patients as possible and analyse it carefully. Apart from that, the hospital can also reduce readmissions by providing adequate follow-up care.
- Say No To Unnecessary Testing - Reducing the number of unnecessary tests administered in the hospitals can help increase the hospital profitability by a significant measure. A study conducted by choosingwisely.org suggests that unnecessary tests and procedures pose a severe problem to the healthcare system. The investigation revealed that the providers can reduce a lot of unnecessary testing by spending more time understanding the patient’s case and their specific health needs. Improved communication between the patient and the physician is indispensable. Apart from that, the hospital must implement an effective laboratory expert system to reduce unnecessary testing.
- Reduce Staffing Costs - Labour undoubtedly is one of the most significant expenses of the hospital. It is essential for the hospital administration to ensure that human resources are not wasted. Adopting measures such as the use of flexible staffing, recruiting part-time or hourly employees, and adjusting the staff based on patient census data can help the hospital function profitably. The hospital management should also monitor the efficiency of the team by continuously reviewing benchmarking data such as the number of hours worked by an employee.
- Manage The Vendors Well - The hospitals can reduce the supply cost by a considerable margin if they manage the vendors well. Reducing the supply costs by working with vendors to improve contracts is a possible way out. The management should also encourage physicians to make profitable supply decisions. Apart from that, the administration should approach the vendors for any special discounts. Also, the hospitals must require the vendors to submit purchase orders for any equipment or implants which are not included in a well-documented agreement with the facility.
- Outsource The Management Of Services - In case the hospital is going through tough economic times, the administration may consider outsourcing or partner with other organisations for certain services. These prominently include services like food, laundry, and clinical services. Outsourcing the management of a few functions is undoubtedly a profitable deal if the hospital can gain greater efficiency by finding a larger-scale operation. The catch, however, is that the provider must be more efficient than the hospital.
Jessica is an avid reader who enjoys getting lost in the world of books. She co-authored Supercharge Organic Traffic: A favourite course focusing on Organic Traffic for E-commerce. Holding on to her passion for fitness, She Believes that a healthy diet is a key to healthy living.