This document outlines the service profit chain model for hospitals. It establishes the link between profitability, customer loyalty, and employee satisfaction. Satisfied, loyal, and productive employees create value for customers, leading to customer satisfaction and loyalty, which in turn stimulates profit and growth. The document then discusses internal service quality, employee satisfaction, retention and productivity, patient satisfaction, loyalty, revenue growth, and profitability as the links in the chain. It provides examples of factors that influence each link.

1. SERVICE PROFIT CHAIN
HOSPITAL
Presented By:
Ajesh Raj 1261
Sijo Johnson 1272
Suyash Kotian 1287

2. Introduction
• Chain that establish relationship between
profitability, customer loyalty & employee
satisfaction
• The link in the chain are as follow:
– Profit & growth stimulated by customer loyalty
– Loyalty direct result of customer satisfaction
– Satisfaction influenced by value provided to customer
– Values created by satisfied, loyal & productive customer
• It also defines a kind of leadership that give
importance to each employee & customer

4. Internal Service Quality
• Workplace Design
– Advance technology for more efficiency in OR
– A healing environment in ICU
– Mastering complex challenges in the emergency dept
– Workplace design for special needs of neonatal care
– Customized infrastructure solution for maximum safety
• Job Design
The instance by which management creates job by
specifying its duties & responsibility

5. Internal Service Quality
• Need For Job Design
– What tasks are done?
– When & how the tasks are done?
– How many tasks are done?
– In what order?
– Factors which affect the work organization of the
content & tasks?
– What is the remuneration to be paid?
– What are the working hours?

6. Internal Service Quality
• Employee Selection & Development
– Determine the need for new or replacement position
– Training programs to new staff member’s
– Hospital employee education
– EDI for employees
• Employee Rewards & Recognition
– Pay attention to the management basics
– Deliver the RIGHT THINGS to the RIGHT PEOPLE
– Consult a strategic partner

7. Internal Service Quality
• Tools For Servicing Customers
– Friendly & helpful staff
– Acknowledging the patient, introduce yourself
– Welcoming environment to patients
– Ideal discharge planning
– Nurses bedside shift report
– Communicating to improve quality

8. Employee Satisfaction
• Employee satisfaction links directly to patient’s
satisfaction
• Hospital’s safety culture and poor patient
satisfaction caused by apathetic staff and unwilling
managers
• Reduce the job stress
• Empowerment in decision making
• Identify the problem of employee & try to resolve it
before it impact patient

9. Employee Retention & Productivity
• Retention effort should begin from day #1 with new
hires
• Career growth & development
• Assign a mentor for learning a job
• Meeting with new employees in every 2-3 months
• Hold social events to encourage friendship between
new employees & new hires
• Increase self-actualization through education

10. Patient Satisfaction
• Better patient satisfaction comes from hospital staff
• By providing the service on the schedule of patient
• Treat patient with smile
• Keeping the patient happy should be the priority
• Cost of the service
• Hygiene factors
• Physician’s & staff members
behavior affect patient satisfaction

11. Patient Loyalty
• The hospital is close to home
• I receive good medical care
• I’ve always gone there
• I receive personalized care
• My doctor recommends it
• It has a good overall reputation
• They provide a range of services
• Myself or a friend/relative works there
• They have a quality staff

12. Revenue Growth
• Build & nurture royal relationship with patient
• Maintain convenient & caring touch point with
patients
• Benchmark & trend your healthcare data
• Mine your health care data to discover roadblocks
• Constantly ask the frontline for suggestion
• Monitor all payers contract

13. Profitability
• Focus on continuum of care
• Design models to reduce readmissions
• Good relationship with payers
• Manage new service line to increase market share
• Control labor cost with meticulous data collecting
• Reduce supply costs by working with vendors &
physicians
• Improve deficiencies in the emergency room &
operating room
• Consider outsourcing some services