Hospitals and health systems must constantly evolve their strategies to remain competitive, efficient, and sustainable. There are several factors that impact market dynamics for healthcare organizations including market competition, introduction of new medical technologies, implementation of electronic health records, and changes in legislation. Healthcare evolution drives strategies and transactions impacting hospital structures, physician practices, supplementary health care services, and physician and patient relationships.
According to Forbes, health care spending accounts for a substantial portion of the U.S, economy $3.4 trillion in 2016, with over 80% of adults having contact with a health care professional in the past year. Healthcare organizations need to develop strategies to compete in the marketplace with substantial competition if they want to obtain a larger portion of those funds. To compete they must strengthen clinical capabilities, improve patient outcomes, and become more efficient in all processes.
Becoming larger is one of the most competitive advantages a healthcare organization can obtain. This can happen through acquisitions, mergers, or joint venture agreements. The key is to leverage economies of scale, strengthen bargaining positions with cost payers, and provide a comprehensive range of services.
Outpatient services continue to expand and are far surpassing inpatient services; therefore, this is an area that healthcare organizations need to develop and expand. Retail and walk-in clinics offer convenient and accessible primary care and are beginning to expand into chronic and specialized care. Some hospitals are entering into partnership agreements with these walk-in clinics, which provides the hospital with a broader database for targeted population health management programs. Another advantage is the hospital doctors have developed relationships with patients when hospitalization is required. Telemedicine is also a growing area of outpatient services that should become a part of any expanding healthcare provider’s services.
Patient satisfaction is also a large factor for competitiveness. Hospitals and providers must build relationships with their patients that allow them to provide responsible healthcare yet increase the patient experience through a commitment to technology and procedures that make it easier, faster, and more efficient for the patient.
Hospitals must cultivate relationships with referring providers to increase patient flow. Keeping these providers happy will ensure continued referrals. Hospitals should solicit referring physicians’ feedback on their facility’s strengths and weaknesses. They can increase their competitiveness by providing patient satisfaction, professional cooperation, admissions management, and coordination with discharge procedures.
Healthcare organizations must invest in updating electronic health systems, staff training, modern premises and equipment, and patient and waiting room amenities to remain competitive. Managing costs through planning enhances the organization’s reputation, attracts more staff and patients, provides more efficient and effective services, and positions the organization to adapt to market changes and ensure regulatory compliance.
Legislative changes are ongoing and constantly shifting with the changes in lawmakers in Washington. Legislative changes at the state level are also extremely impactive the past several years. Organizations need to remain educated and address all regulatory compliance changes. Healthcare organizations must also be flexible and adapt to the impact of new health care legislature.
Healthcare evolution is constantly changing, and health care organizations need to adapt and change to remain competitive. Genesis Medical Management can help your healthcare organization to remain competitive in this constantly shifting environment. Contact us today to help you develop the strategies needed to take your organization to the next level.
Let's Grow Together!
We look forward to learning about your healthcare business to discover how GMM can create a profitable solution!