Improving Services to Expand Patient Base & Revenues

Suburban Community Hospital: Improving Services to Expand Patient Base & Revenues

Situation

This community hospital had been a community service provider for over 30 years. The community had grown older and younger families were moving to a growing neighborhood 15 miles south of the hospital. Many affiliated physicians were retiring and new physicians did not find the core market adequate enough to support their entire practices. Consequently, patient utilization and revenues of key service programs in the hospital (such as surgical suites, pediatrics, and OB) did not achieve their goals.

Business Challenge

The hospital had to cultivate a younger patient population from a community in which it did not have a significant presence. Affiliated physicians were not willing to move their practices to this community and the hospital was unable to attract the large base of physicians it needed. In short, revenues had to be generated from a new patient base and in a community that was not served by the hospital or its existing medical staff.

Solution

Cadre worked closely with hospital leaders to specify and prioritize service needs. Next, Cadre researched the feasibility of locating a novel new health center in the growing neighborhood which included an immediate care center, primary care physician practices, basic diagnostic services and a time shared turn-key medical office suite. These enabled physician specialists to expand their practices in the new neighborhood for a few afternoons a week and begin building their practices without opening up costly stand-alone offices. Cadre worked closely with architects to design the new center to promote operational efficiencies, make it more community oriented, and feel less institutional. Cadre also developed the marketing and sales program for the new center.

Results

The new center quickly offered the needed services to young families who used the center for their out-patient needs and traveled to the hospital for their in-patient needs. Targeted in-patient revenues increased by 20%. Over time, the hospital’s younger patient base increased by almost 35%.