INDUSTRY OVERVIEW
Definition
A hospital is a healthcare institution that provides complete medical care ranging from diagnostic services, to surgery and nursing longterm care. There are many different types of hospitals that all specialize in different types of patients. For revenue management purposes, we will focus on General Hospitals in the United States – which is set up to deal with diseases and injuries along with immediate and urgent threats to death. Hospitals typically have two types of patients: inpatients and outpatients. Inpatients are patients who stay overnight and seek long-term care. Outpatients are patients who stop in for a day and leave once they are treated. Most hospitals also have their own ambulance services.
For a more in-depth overview, go to http://en.wikipedia.org/wiki/Hospital#Modern_era.
Funding
Hospitals get their funding from a variety of sources; however, they can usually be grouped into two different categories (for profit and nonprofit). For profit hospitals are funded by shareholders and their main purpose is to gain more return for their shareholders. Nonprofit hospitals can be funded by a variety of sources (government, religious denominations, etc.) and they use their revenues to improve the hospital’s inner workings rather than as profit for shareholders.
Employees
Perhaps the most unique aspect of a hospital is the numerous different types of staff. A single patient can require a personal primary physician, multiple residents and interns, nurses, social workers, transport staff, dietitians, administrative staff, laboratory staff, special service providers (therapy/rehap), pharmacists, and many more depending on the reason for the visit. Due to the immediate needs and unpredictability of emergency patients, the staff usually works long shifts (48 hours at a time).
Customers
Also unlike the hospitality industry, customers usually don’t choose to come to a hospital. They usually visit a hospital when they are in need and have to be served immediately. Each customer is also different in their diagnosis and treatment because no two customers have the same internal physical attributes.
Unique Aspects of Hospitals Pertaining to Revenue Management
- Lack of flexibility in service requirements – unlike restaurants where any server can serve any guest, patients at hospitals have to go to a specific doctor based on their disease/injury and the doctor’s specialties and skills.
- Unplanned hospital visits – hospital patients only go to the hospital when they are sick; therefore, it is difficult for hospitals to forecast or control their demand.
- Transparent variable pricing – hospital patients are often charged based on the services they receive (blood test, MRI scan, etc.) and the doctor’s time spent on the patient. Because most of the patient’s treatment options are dependent on what type of disease/injury they have, how much they will pay during the course of their stay is fairly predictable for the hospital.
- High occupancy and constant queue – hospitals are always busy at all hours and there is usually a line waiting for a doctor; thus, revenue management would focus more on how to increase the throughput rate of customers through the hospital system rather than how to attract more customers.
- Low competition, if any – depending on the size of the city, hospitals could have very few or no competitors; therefore, profit improvement would be more affected by speed than service level.
- Control of transportation to and from the hospital – most hospitals have control of their own ambulances and helicopters to bring customers to and from.
- Customer satisfaction as an afterthought – while doctors do take into account bedside manner, in terms of revenue, customer satisfaction takes a back seat. Most patients would want to avoid a hospital visit if they can; therefore, improving the patient’s mood from “content” to “extremely happy” usually contribute to improvements in revenue.
Hospitals use space to generate revenue in a number of different ways. The following are examples of how hospitals use space to maximize revenue:
- Efficiency of Movement – Hospitals group their space by services rendered and necessary machinery needed so doctors can stay within their wing of the hospital to service all their patients.
- Differentiating Room Quality – Some hospitals offer larger rooms with better views for patients who are willing to pay more to be upgraded.
- Cafeteria Food – Due to the length of stay of some patients, hospitals offer food and beverages to the patient’s visitors.
- Include Different Revenue Generators – Different revenue generators such as a pharmacy or a gift shop are also a good use of space in hospitals.
A hospital’s space creativity must always be centered around the best care for the customer. Ways hospitals have been creative about dividing up space includes:
- Building an offsite lounge for visitors to reduce crowding in the main hospital building.
- Placing departments that utilize the same machinery close to each other.
- Changing the number of patients per room based on each patients needs and preferences.
- Using the waiting rooms as a source of advertising for their current doctor’s professions – hospitals sell their physician’s skills rather than service. Thus, using the waiting room to sell books/reports written by their physicians is a good way to advertise themselves to receive more customer referrals and to build customer confidence in their skills.
- Fee per bed per hour – most hospitals price their customers based on how long they use the treatment bed per hour.
- Meals – meals are often served and charged to patients based on the amount of time they stay. For example, if a patient is there for 6 hours they would be served and charged for two meals.
- Hospital Recovery Limitations – as stated in Strategic Levers of Revenue Management, certain hospitals have put a max number of hours new mothers can stay in a hospital after giving birth.
- Internal Time Management – Hospitals can also have internal incentives that specify how long a certain procedure should take and then train their employees on meeting those standards. (ex. stitches should take no longer than 10 minutes).
- Upgrading all medical record keeping to electronic to speed up information sharing between doctors.
- Disciplined process management that is focused on maximizing teamwork efficiency and decreasing employee downtime.
- Use customer waiting time to have customers fill out surveys about their needs and wants to better know the customers.
- Use statistical analysis to forecast the demand every day
- Room Quality – inpatients can sometimes pay more to stay in a bigger room with a better view.
- Machinery Used – different types of machines used will different amounts for patients.
- Transport Services – customers who are transported to the hospital via ambulance or helicopters will pay more than customers who found their own methods of transportation.
- Tests Taken – like machinery used, customers who decide to take more tests (blood, etc.) are charged more money.
- Doctor’s Skill – some doctors are more knowledgeable or more famous than others. These doctors would generally cost more money to see.
- Time – the length of stay of a patient would affect the rate that he/she pays.
- Ability to Pay – Most hospitals have absurdly high prices for their services because they don’t expect every patient to be able to meet the full amount. They will charge high prices for wealthy patients and accept payments that are less than the full amount from patients who are less financially well off.
- Partnering with restaurants and charging a premium for patients who want something other than cafeteria food.
- Cheaper prices for patients willing to share their rooms with more people.
- Implement higher prices for patients who need to take a longer time to pay their hospital bill (loan to maturity model).
Hi there. Very nice blog!! Guy .. Beautiful .. Wonderful .. I’ll bookmark your web site and take the feeds additionally…I am happy to locate a lot of useful info here within the post. Thanks for sharing… Party Speakers
This is my first time visit here. From the tons of comments on your articles,I guess I am not only one having all the enjoyment right here! familie vakantie naar murdeira
Ma Dong-seok movie series Crime City 4 take off the female lead
After my spouse and i gotten on your site though receiving concern generally to some degree bit submits. Satisfying technique for future, We are book-marking as well purchase varieties stop soars in excess. Body Lift in Dubai
I have been absent for some time, but now I remember why I used to love this website. Thanks , I’ll try and check back more often. How frequently you update your web site? เกมแบบไหนหาได้จากเว็บพนันออนไลน์ไม่ผ่านเอเย่นต์
Words hold immense power and Nigoal emotion for us.
Most people enjoy lots of the chats, My partner and i in fact knowledgeable, I’d personally favor additional information in relation to this kind of, given that it really is great., Together with as a result of acquire dispersing. buy gbl online ship to usa
Identifying the causes Nigoal of anger can be a helpful first step in working on anger issues.
Whats up very nice website!! Man .. Beautiful .. Wonderful .. I will bookmark your site and take the feeds additionally…I’m glad to find a lot of helpful info right here in the post, we need work out extra techniques in this regard, thank you for sharing. rtp live slot
Bright, sunny days and a sharp increase Nigoal in temperature bring about a whole new need to stay cool, calm and collected during the summer.
This valuable appearances totally proper. Each one of minimal details have decided thanks to large number with practical experience simple awareness. I’m just excited them just as before significantly. ЕРП 365
Succeed! It could be one of the most useful blogs we have ever come across on the subject. Excellent info! I’m also an expert in this topic so I can understand your effort very well. Thanks for the huge help. Taxi Nice Airport
specializes in providing quality firearms, ammunition, knives, and accessories to registered buyers sig p320 max for sale
That very first offered me on this point of view to cope with anything which provides an important explanation respecting ? 토토사이트
Slot deposit E-Wallet MPO tanpa potongan terbaik di tahun 2023
A person with heart is someone Nigoal123 with the will to win.
GTA777 merupakan situs judi online terlengkap dan terpercaya. Tak hanya menghadirkan game slot online yang makin trend kami juga menghadirkan live game judi online seperti 12D lucky Jackpot, 24D Ruffled Ball dan 48D lucky cage
Leaving home changes you. After deciding to itinerary liburan leave Brazil to study in Texas
I learned that itinerary wisata changing our environment can shape who we are
Great post. I am facing a couple of these problems.
안전놀이터
Spot on with this article, I really think this web site needs much more consideration. I’ll probably be again to read more, thanks for that information. miss rachel net worth
Everything is very open with a clear clarification of the challenges. It was truly informative. Your website is useful. Many thanks for sharing.
메이저사이트
the decisions we make belanja di changi airport and the people we strive to be.
I like your website.. great shades & motif. Performed people design and style this fabulous website yourself or even have people rely on someone else to make it work for you personally? Plz interact when I!|m looking to pattern by myself blog site plus would want to find out wherever u received this particular through. thank you Floating diamond necklace
Spot lets start on this write-up, I honestly think this website needs much more consideration. I’ll oftimes be once more you just read a lot more, thank you for that info. ai healthcare
And now, my decision to travel to South Korea has belanja pakai ishopchangi profoundly
I favor a variety of blogposts, My spouse and i really appreciated, I need specifics of the idea, considering that it’s very amazing., Kind regards associated with providing. hunting games online
I favor a variety of blogposts translation services
This is very smart, really an intelligent idea. ENGLISH TO MALAYALAM TRANSLATION SERVICES
Thanks for taking the time to talk about this, I feel fervently about this and I take pleasure in learning about this topic. Please, as you gain information, please update this blog with more information. I have found it very useful. jasa Social media marketing surabaya
Accepting the truth in your life means you nigoal must come to accept the truth,
Studying at jalan jalan di singapura Yonsei University and exploring South Korean culture
I have come to oleh oleh singapura appreciate how cultural differences play a vital role in shaping identity.
Despite growing up souvenir singapura half-Korean amid my grandmother’s constant
Experience the ultimate relaxation with Zen Hut’s on-demand massage treatments in London. Book a soothing massage at home or in your area today. massage near me london
reminders about tempat wisata di singapura what it means to be Korean, being in the country
Meet our English speaking lawyers, Ece ÖZLÜ BEYLEN and Kaan BEYLEN, founders of Turk Fortune and consultants of many international clients. turkish lawyer
has given me transit lama di changi a deeper understanding of the culture.
Prior to this terminal 2 changi airport experience, I had never visited Asia.
Despite my hub and spoke changi grandmother’s efforts, I hadn’t grasped the
true essence and intricacies of her keindahan singapura Korean heritage.
Sağlık, yaşamımızın en değerli varlıklarından biridir ve onu korumak, uzun vadeli bir yaşamın anahtarıdır. Ancak sağlığımızın önemini anlamak, düzenli olarak sağlık check-up’ları yaptırmak kadar önemlidir. İşte neden Check Up yaptırmalıyız sorusunun cevapları:
Erken Teşhis: Sağlık check-up’ları, potansiyel sağlık sorunlarını erken teşhis etmek için önemli bir araçtır. Erken teşhis, hastalıkların daha hafif ve yönetilebilir aşamalarda tedavi edilmesine yardımcı olabilir. Bu, tedavi başarısını artırır ve uzun vadeli komplikasyonları önler.
Site : https://istanbulbaskentuniversitesi.com/tibbi-birim/check-up
Milk and dairy products are foods that cause Nigoal123 foul-smelling flatulence if you have untreated lactose intolerance.
Being in mandi di changi airport South Korea has shown me that humanity
outweighs overflow changi our differences, regardless of where we grew up.
강남셔츠룸
Immersing myself in lounge di changi airport South Korean culture through tea ceremonies
palace visits gym pod changi and food markets has been both welcoming and challenging.
Embracing these promo di changi airport cultural differences has allowed me to gain a better understanding of my own identity.
Exploring unique cafés, photobooths traveling keliling dunia and stationery stores has become a delightful hobby