As a physician, we are aware that you have the most altruistic motives of providing world-class healthcare and improving people’s lives for the better. But, as a healthcare entrepreneur, you must remember that a hospital is a business too and along with saving lives, you must ensure that you are generating revenue and garnering profits.

The Healthcare segment is highly competitive. It is like being in a feud in a colosseum in which the best warrior wins. To emerge victorious over such powerful competition and make profits, you must incorporate a practical and feasible financial strategy to guarantee profits. This is of utmost necessity if you want to reach breakeven and stay solvent. Profit maximization is a set of techniques that are employed by businesses to optimize revenues and improve profits. As a busy physician, if you do not have the time or experience to get into this complicated process, you should engage the services of an experienced healthcare consultancy firm. These firms usually have a cohort of specialists from diverse fields who can help you formulate and implement profit maximization strategies that are best suited to your type, size, specialty of hospital. Profit maximization can be two pronged.

1. Reduction of costs
2. Increase of efficiency

Some integral aspects of a hospital profit maximization strategy will be

1. Need mapping

A hospital is a mammoth organization which needs a plethora of equipment, devices, instruments, utilities, and gadgets. As a first-time healthcare entrepreneur, you may be tempted to invest in every one of these. Hospital consultancy firms can conduct an unbiased need mapping exercise. This exercise will assist you to narrow down on which things are mandatorily essential for your facility and which things will merely be white elephants and can be cut off your procurement list. This will save costs and any cost saving leads to profit maximization.

2. Workforce recruitment

Getting a skilled and balanced healthcare team without understaffing or overstaffing is a most important challenge for hospitals. You can save costs by resorting to tactics like flexible staffing, part-time employment, automation of certain services, and telehealth facilities. Another cause of drain on profits is attrition which leads to loss of efficiency and slowed workflow. This can be prevented by ensuring a decent work environment, offering rewards, and building loyalty. A healthcare consultancy firm can help you formulate a sturdy recruitment and retainment and reimbursement strategy.

3. Optimization of utilities

An experienced hospital consultancy firm use technology to gauge, analyse and determine the utilization and efficiency levels of your assortment conduct analyses to help you make optimal use of your resources.

4. Negotiation with vendors and suppliers

Procurement, maintenance and repair of equipment and other utilities is a major cost in any hospital. A reliable hospital consultancy firm can help you negotiate with vendors to get the best possible deals, discounts and contracts that can save costs and improve profits over time.

5. Efficiency analysis

A hospital consultancy firm will carry out a quality control exercise to map the performance of your team members using qualitative tools like appraisals, feedback from patients, satisfaction kiosks and quantitative tools like time controls, efficiency graphs etc. to determine if there are any lapses in the operation which can lead to loss of profits over time.

6. Optimization of Patient experience

Profits are an outcome of increasing patient volumes, and this can occur only if patients are satisfied with the services provided and they recommend your facility to others and write wonderful reviews on social media. A hospital consultancy firm can help you curate a comprehensive strategy for enhancing the whole patient experience at every step, from the time of appointment booking till the time of discharge.

7. Digitalization

Investing in an efficient Information management system can add efficiency to your workflow and help you curtail costs of storage of records. It can also help you improve efficiency and save on time. Since time is money, this technology upgradation can directly and indirectly add to your profits.

8. Widening of services

Reduction of expenditure will increase profits but if you cut down on amenities, your perception in the minds of your target audience will dip leading to a major abyss in your profits overall. Instead, you should incorporate an array of attractive services in your basket which will appeal to your potential clients and build brand equity and loyalty which will all culminate in profits.

Your hospital consultants can help you design this additional offering menu effectively.

Some of these add-ons can be

Tele-health services

Nutritional counselling

Lifestyle management guidance.

Physiotherapy and exercise sessions.

Healthy living workshops.

Free or discounted health check-ups

Early detection camps.

To summarize, healthcare is an evolving market where paradigms shift in a second and contemporary trends develop without precedent. As the world reels under the pandemic-triggered recession, healthcare is also going to be impacted. If you want to remain sustainable in these unpredictable times and improve your profits, be sure to engage the services of a hospital consultants like Hospertz, a leading healthcare management consultancy firm of India. You can rely on us to sculpt your profit maximization plan

Blog has been written by Dr. Vishal Jadhav, a veteran in the field of hospital consultancy with a rich experience of more than 20 years and founder of the Healthcare Consultancy Firm, Hospertz.

Dr. Vishal Jadhav, Director
hospertz@gmail.com
+91 9867712705/ 9820833149

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