Over the last six and a half years, many new and innovative strategies for delivering healthcare have surfaced, especially with the introduction of the Affordable Care Act of 2010 signed into law by President Obama. Transitioning from volume to value in healthcare reimbursement is well underway with the introduction of bundled payments for Comprehensive Care for Joint Replacements (CJR) on April 1, 2016 and soon, a bundle in cardiology. In the midst of these radical and important changes to the U.S. healthcare system, this becomes a great opportunity to excel at the basics of healthcare management in order to better respond to the turbulence that change often brings. This includes but isn’t limited to: market positioning, margin awareness, revenue cycle essentials, effective recruiting, and tackling fear.
Market positioning can simply be defined by how your organization is viewed by patients (or customers) in the marketplace. There is a subtle point here, “viewed by patients”; meaning it matters less what senior leadership thinks is the position of the organization. While it is important for senior leadership to understand how they want to be positioned in the marketplace and take actions to achieve this, the reality of a market position is determined from the perception of the patients. So how do you gauge this perception and know what steps to take to be closer in alignment with the intention of leadership? A thorough market assessment by your strategy department or third party can help uncover the reality and identify actionable steps to achieve the desired market position of your organization.
Once market positioning is defined, it is key to review exactly how your organization earns revenue and turns a profit. In other words, being aware of what drives a positive profit margin is key for defining marketing efforts and what your organization decides to “double down” on. For example, selling more and doing more in the mostly volume-based current environment isn’t always good for the organization’s profits, especially if the service has a negative contribution margin. In other words, are you fully aware of the costs associated with performing a service that you think is the key to healthy financial performance?
Please see here for the full article.
The views, opinions and positions expressed within these guest posts are those of the author alone and do not represent those of Becker’s Hospital Review/Becker’s Healthcare. The accuracy, completeness and validity of any statements made within this article are not guaranteed. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author and any liability with regards to infringement of intellectual property rights remains with them.
