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Seven Strategies to Improve Your Bottom Line
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IN THIS SUMMARY...

IN THIS SUMMARY
In Seven Strategies to Improve Your Bottom Line, E. Preston Gee outlines different tools and strategies that can help healthcare executives cut costs and improve their hospital’s efficiency and overall popularity. Some of these strategies include the incorporation of the Internet as a management tool, the incorporation of complementary and alternative medicine, and the addition of retail-like visual traffic. E. Preston Gee goes on to discuss the various ways hospitals can increase the number of insured individuals within their community, thus increasing the hospital’s revenue. He also explains the concept of “co-opetition,” and highlights the ways in which healthcare executives can use communication as an economic tool to improve overall hospital profitability.

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Seven Strategies to Improve Your Bottom Line Presentation Transcript

  • 1.  
  • 2. SEVEN STRATEGIES TO IMPROVE YOUR BOTTOM LINE The Healthcare Executive’s Guide AUTHORS: E. Preston Gee PUBLISHER: Health Administration Press DATE OF PUBLICATION: 2001 151pages
  • 3. FEATURES OF THE BOOK Seven Strategies to Improve Your Bottom Line would be of most benefit to those working in executive-level positions within the healthcare industry.
  • 4. THE BIG IDEA In Seven Strategies to Improve Your Bottom Line , E. Preston Gee outlines different tools and strategies that can help healthcare executives cut costs and improve their hospital’s efficiency and overall popularity.
  • 5. INTRODUCTION In Seven Strategies to Improve Your Bottom Line , E. Preston Gee outlines different tools and strategies that can help healthcare executives cut costs and improve their hospital’s efficiency and overall popularity. Some of these strategies include the incorporation of the Internet as a management tool, the incorporation of complementary and alternative medicine, and the addition of retail-like visual traffic.
  • 6. STRATEGY ONE: STREAMLINE OPERATIONS THROUGH SERVICE LINE MANAGEMENT The first step to improving a hospital’s bottom line is to streamline hospital operations through service line management . One of the biggest mistakes hospital executives make is to assume that bigger is better. For the most part, the notion of hospital profitability has been based on the idea of expansion and the broadening of services the hospital offers, as well as the addition of new wings.
  • 7. STRATEGY ONE: STREAMLINE OPERATIONS THROUGH SERVICE LINE MANAGEMENT The next step is to orchestrate a service line audit and arrange the service lines by evaluative criteria. The managers should be involved in collecting and evaluating the data to help familiarize themselves with the reality of their service line. The data collected can be arranged by volume, financial means, and growth potential among other measures. The data should be displayed in a graphic format that conveys the strengths and weaknesses of the line, as well as potential opportunities.
  • 8. STRATEGY TWO: USE THE INTERNET AS A MANAGEMENT TOOL Using the Internet as a management tool can increase profits and decrease the complexity of the customer experience . A group of four doctors in New Hampshire recorded savings of $120,000 annually when they switched to electronic medical records, and the cost of filing a hospital insurance claim drops from $1.25 for a paper claim to five cents per claim when filing the claim online. The Internet also allows for information to be accessed quickly and easily and by different departments, thus reducing the number of repetitive forms that patients have to fill out.
  • 9. STRATEGY TWO: USE THE INTERNET AS A MANAGEMENT TOOL The first step to utilizing the Internet as a management tool is to get the CEO to champion the initiative so they can drive its planning, execution and expansion . The CEO should be shown the various ways in which the Internet could improve their healthcare organization in order to get them to support the initiative.
  • 10. STRATEGY THREE: ENHANCE THE SYSTEM THROUGH CO-OPETITION Co-opetition is a recently coined word, which has been defined as the ideal blend of competition and cooperation, the idea being that everyone in a capitalist economy must compete, but that sometimes the best possible outcome for two competing organizations is to collaborate and work together on a project.
  • 11. STRATEGY THREE: ENHANCE THE SYSTEM THROUGH CO-OPETITION Co-opetition can also help reduce the inherent duplication of information within the healthcare industry. The first step towards co-opetition is to call a meeting of the providers and convey the benefits of co-opetition to them . Once several different providers are on board, everyone should work together to identify three meaningful and achievable potential co-opetive initiatives. The group should also identify the roles, namely administrative, that various people within the group will hold. This process should not take more than a few meetings.
  • 12. STRATEGY FOUR: INCREASE THE NUMBER OF INSURED TO ENHANCE INCOME One of the best ways to increase hospital profitability is to increase the number of insured individuals. A deadly cycle has begun to repeat itself within the healthcare industry, and it begins with the uninsured putting off receiving medical attention because they cannot afford it. They then eventually have to go to the emergency room, where physicians are legally required to treat them, whether or not the patient can pay. As a result of the losses the hospital takes from treating the uninsured, the overall cost of healthcare increases.
  • 13. STRATEGY FOUR: INCREASE THE NUMBER OF INSURED TO ENHANCE INCOME This makes the cost of health insurance increase , and many smaller employers are then no longer able to afford health insurance plans for their employees, so they cancel them. This creates even more uninsured people, which in turns causes the costs of healthcare to go up again, and the cycle continues.
  • 14. STRATEGY FIVE: USE COMMUNICATION AS AN ECONOMIC TOOL For the most part, healthcare organizations have done a very poor job communicating to the public; they try to hide their problems from the public until they become so large that they cannot hide them anymore. Instead, these organizations should be clear and efficient in communicating the difficulties facing their industry . The media should be used as a vehicle to spread important information, and the release of data should be viewed as an opportunity rather than a threat to security. Being open about what is going on within the healthcare industry allows organizations to function in a way that can be understood by the outside world instead of fostering misconceptions.
  • 15. STRATEGY FIVE: USE COMMUNICATION AS AN ECONOMIC TOOL The first step to improving communication within a healthcare organization is to adopt the attitude that communication is central to successful strategy. To do so, the organization should bring senior executives on board by explaining the benefits of open communication. The next step is to appoint a Chief Communication Officer (CCO) to coordinate the communications initiative and take responsibility for the success or failure of the initiative.
  • 16. STRATEGY SIX: DERIVE FINANCIAL BENEFIT FROM COMPLEMENTARY AND ALTERNATIVE MEDICINE While it is important to keep hospitals lean and streamlined, complementary and alternative medicine (CAM) would make an excellent addition to many healthcare organizations. Studies have shown that baby-boomers make up the largest concentration of CAM users. CAM has genuine staying power and is primarily spreading in popularity via word of mouth from satisfied patients. According to Gee, CAM practices range from “established,” (chiropractic), to “non-threatening,” (massage therapy), to “politically radioactive,” (crystal therapy).
  • 17. STRATEGY SEVEN: TAKE ECONOMIC ADVANTAGE OF RETAIL AND VISUAL TRAFFIC Healthcare organizations can also increase profitability by taking advantage of the marketing-oriented world they live in through the incorporation of visual traffic advertisements and retail stations. Visual traffic accounts for a large number of paid advertisements, and it includes people who see the facility, its offices, clinics, or programs. Even in small towns, hospitals have vast amounts of foot traffic each day.
  • 18. STRATEGY SEVEN: TAKE ECONOMIC ADVANTAGE OF RETAIL AND VISUAL TRAFFIC To best utilize hospitals marketing and retail potential, organizations should hire a marketing expert . This can be someone who has a large amount of marketing experience in another field. The hospital should then calculate the average amount of foot traffic they receive each day and the average number of people attending their classes and seminars.
  • 19. STRATEGY SEVEN: TAKE ECONOMIC ADVANTAGE OF RETAIL AND VISUAL TRAFFIC The organization should use the Internet as an example when it comes to cross-selling, or advertising products that the public is likely to need simply because they are in a particular area. An example of this would be selling baby clothes and breast pumps in the obstetrics area of the building. Lastly, the marketing group should continue to evaluate the program at regular intervals and be willing to adjust the program when necessary.
  • 20. Business Book Summaries is a product of EBSCO Publishing. The website is updated weekly with 4 to 5 new summaries chosen from among the top business books printed in the United States. For more information or to sign up for the weekly newsletter, please visit http://www.bizsum.com. ABOUT BIZSUM.COM