Often when a hospital is on the decline many boards will automatically accept that the hospital is failing, cut their losses and move on. When assessing the situation parties should try not to just solve the short term issue, but strive to continue to stabilize the situation and lay down roots for future growth by building a long-term road map which & tap unexplored areas which were never thought before.
So, if you are one of the many who are a governing body of a hospital and wants to know how to turn around a distressed hospital, here are four strategies to help you on your quest.
The first step for any crisis is to bring in a professional CEO who takes the lead in the turnaround process rather than you as a hospital owner trying to manage yourself the day to day operations.
If your hospital doesn’t currently have a CEO this should be where you start the selection process. The CEO should always be in communication with staff, the board, trustees, and community of the hospital.
In this process communication is key and helps keep everyone focused on the recovery of the hospital. The CEO should know where the hospital has failed and uncover ways to turn those failures into success with timetables and plans for growth. He is the one who will build a team of professional HOD’s to manage the hospital well.
Second is to develop new product lines of revenue by doing a market research on patient demographics in the region to find out which services they want at what price points so that you can offer them what patients need.
Develop the product lines which are service oriented, transparent with no hidden cost and shock when a patient receives the final bill on discharge.
Third is to outsource certain dept to those who are professional and better than the way we manage that service.
This way, those companies will run those services awesome, make profits and also we share a % of the profit. Hence, dept in losses will be run by outsource companies who are best in that e.g. do not try to run the pharmacy, canteen, lab, and dialysis etc. services all by yourself. Outsource them.
Fourth is to build a long-term pipeline by building our image in the community/ society is to participate in the community ran activities, like tree plantation, cleanliness drive, and social cause.
This will lead to getting support of local administration, government, and police and they in turn can send massive number of patients.
Also, the last thing you want to do as a hospital is step on your competition’s toes.
Don’t launch services that undermine your competitors and their livelihood. Doing this will only create enemies who will not make your turnaround efforts successful. Instead work together with other hospitals and create good relationships, that way you can refer patients to them and vice versa.
No turnaround is ever easy and this process requires lots of open minds and good leadership besides team building.
If you want more information about how to turn around a distress hospital feel free to contact us https://www.hospitalforsalelease.com/contact-us