Patients see hospitals as a place of help, somewhere to go for medical care, especially when suffering from serious conditions. The building, though, is also a business, and, to remain open, it too must have enough revenue to pay staff and bills. Unlike many company’s, hospitals cannot require patients to pay upfront for services or pay before they leave.
How then does a medical facility stay not only afloat but become profitable? Acquiring this balance may prove challenging for administrators who face several complicated factors such as poor economies, medical crises and supply chain concerns. Administrators might ease the financial burden and improve overall profitability by implementing the following three strategies.
1. Focus on Improving Customer Satisfaction
Like companies, hospitals should strive to establish a positive image with the community, for when people like the establishment, they could be more likely to return for future care. In addition, these patients tend to speak highly of the hospital and provider care, often referring others to the group. This continuous flow of patients helps aids profit margins by creating a consistent stream of income.
2. Assess Your Current Supply Demands
Hospitals require specific materials to assist patients with their medical needs. Staff may not have time to assess the current states of items, creating an inventory of what is currently in stock and what has a surplus. If this situation continues without any intervention, closets and drawers may become overrun with unused supplies.
Get ahold of the situation by focusing on operating room supplies optimization. This room stays busy, and it could receive little inventory attention because of the fast-paced nature of the space. If administrators continue to restock things that are already there, then they simply waste money. Optimize the room, having someone look over current drawers, shelves and closets. Order what you need only, reducing supply expenditures.
2. Invest in Revenue-Specific Software
When patients return home, the hospital faces the task of filing claims with the insurance company before sending out final bills. This lag time leaves hospitals vulnerable, waiting for both the insurer and patient to accept the final amount and supply the funds.
Rely on revenue-specific software to review codes and charges. After all, human errors happen. Sometimes items appear twice; other times, an insurer may expect a different code. These mistakes delay payment. To avoid this problem, catch inaccuracies early.
To improve hospital profit margins, administrators must evaluate the current financial status, understanding what obstacles currently pose obstacles to monetary success. Use this data to determine how employees could improve supply chain problems, ease revenue acquisition and boost customer satisfaction.
