In today’s economy, several hospitals may be struggling to stay afloat, especially when it comes to smaller rural practices. No matter the size of your facility, there are still steps that can be taken to improve all financial situations.
- Add new services that have a good return
One of the most valuable tactics to increase revenue is to add new service lines your organization doesn’t currently offer. Do your research before you add new lines of service. Study the population that surrounds your organization. What types of services is the population in need of? Research the demographics of your area to get a better understanding of the types of service you should be offering. Do a comparative analysis on the competing hospitals near by. Check into the services they provide their patients to see how your hospital needs to improve. Go a step further and start offering services other hospitals are not offering. This way you don’t have to compete for patients.
- Improve your Organizations Reputation
It’s extremely important that your healthcare organization is maintaining a positive reputation. A 2012 World Economic Study found on average that more than 25% of a company’s market value is directly correlated to its reputation. What opinion does your community hold when it comes to your hospital? Try sending out a community engagement survey to find out how the locals view you. It’s likely your hospital won’t get perfect reviews, so try and use the negative results to improve in those areas.
- Consider Outsourcing Certain Services
Removing the administrative overhead and sending out services that better function through an independent contractor will directly result in bottom line savings. Consider outsourcing both low-level and high-level services. Some low-level services that are typically outsourced are: laundry services, food services, and maintenance. Some high-level services that will save your facility a larger percentage of money, are most commonly: Medical coding services, audit services, denial management services, and continual education services. When considering outsourcing these types of services it is important to look into your options to find the company that best suits your needs.
- Save by Going Green
It is estimated that $15 billion dollars could be saved in just 10 years if all hospitals in the U.S. implemented conservation habits such as: reducing use of electricity and natural gas, limiting avoidable waste through smart purchasing efforts, and implementing recycling processes. Hospitals that invest in environmental sustainability practices, end up saving large sums of money. For example, in 2014 Gundersen Health System officially became energy independent. The facility has improved the overall air quality for patients, reduced hazardous waste, and has even boosted the local economy. Financially, Gundersen Health System saves over $2 million dollars every year.