4 Suggestions for Hospitals to Increase Their Profits

Hospitals may be in the business of caring for people and saving lives, but they are also in business to make money, just like any other business. After all, there are so many employees that need to be paid. There may be those who are not employees of the hospital but who work there, for example, canteen staff or janitors. They may be paid by their own companies, but the hospital will have to pay for the contract. So, all hospitals want and need to make a profit, so let’s look at some of the best ways they can do this.

1. Maintaining Proper Care & Customer Service

When all aspects of a patient’s care during a hospital visit or stay is provided with a good degree of professionalism and customer service, the patient goes away with a feeling of satisfaction. This could mean that in future, they would turn to the same hospital should they require treatment. There have been studies to show that there are marked differences between an average hospital and a good one when it comes to profit margins, proving that excellent care and service does enhance a reputation which leads to financial gains.

2. Lowering Readmissions

It can get pretty costly for hospitals if their readmission rates are high. If a hospital’s readmission rates are quite high, it’s possible for them to be penalized by the national healthcare system, so it’s really in their best interest to reduce the number of readmissions. There have been research studies that suggest that a certain percentage of patients that were readmitted to the hospital within a month could have been prevented. Follow-up care and care management along with analyzing patient data can play a part in reducing costly readmissions.

3. Control Of Labour Costs

With proper and regular data analysis, it will be easier to control labour costs. Labour costs and labour-related costs account for more than half of a hospital’s expenses. It’s important to hold daily meetings on this with all departments. With all department heads on the same page, it’s easier to see what goes on elsewhere in the hospital and solutions to problems can be discussed and implemented. If it’s not possible to meet for a few minutes a day, then it should certainly be looked at on a bi-weekly or monthly level. Healthcare consulting services can be used to come up with effective plans.

4. Reduction In Unnecessary Testing

Unnecessary testing can cost millions of dollars. Here is where doctors can help. Doctors can spend more time talking to patients and accurately assessing their health needs. Sometimes, you wait such a long time to see the doctor and within a blink of an eye, the appointment is over. There are doctors who don’t spend enough time with patients. Sometimes, patients also ask doctors to perform certain tests on them, which the doctor will go ahead and do, which may not have been necessary.

Healthcare consultants can work together with hospitals and come up with effective strategies that work and that will save money. These professionals will look at every aspect of day to day operations and implement changes designed to make the hospital run smoothly and efficiently while saving money.

Kelly Young is a writer born and raised in Toronto. Proud of her simple and cozy life, a perfect evening for Kelly would be to snuggle up in bed with her cat and a well-written historic memoir.