This is a working paper and I am seeking collaborators.
Abstract
This review explores the correlation between improved patient care and profitability in healthcare institutions. Drawing on multiple sources, it presents evidence that a positive patient experience, a key indicator of improved patient care, is associated with increased profitability. The review also highlights strategies that can enhance patient care and, consequently, profitability, such as reducing readmissions and unnecessary testing, understanding revenue cycle performance, and investing in effective technologies.
Introduction
The healthcare industry is increasingly recognizing the importance of patient care quality in determining institutional profitability. This review aims to consolidate the evidence supporting this correlation and to identify the mechanisms through which improved patient care can enhance profitability.
Methodology
This review is based on a comprehensive examination of various sources, including academic articles, industry reports, and healthcare blogs. The sources were selected based on their relevance to the topic and the credibility of their publishers.
Findings
Patient Experience and Profitability
A study published on SCP Health’s blog and a research paper on PubMed both found a strong correlation between patient experience and profitability. They reported that a more positive patient experience is associated with increased profitability, while a more negative patient experience is strongly associated with decreased profitability. These findings suggest that improving patient care, as reflected in patient satisfaction, can lead to increased patient loyalty and, consequently, increased profitability.
Strategies to Enhance Patient Care and Profitability
An article on RevCycleIntelligence outlined several strategies that can improve patient care and profitability. These include:
- Reducing Readmissions: High readmission rates can be costly to hospitals. By providing effective follow-up care and implementing care management, hospitals can reduce readmissions, leading to cost savings and increased profitability.
- Reducing Unnecessary Testing: Unnecessary tests can lead to wastage of resources. By improving communication between patients and physicians and implementing effective laboratory expert systems, hospitals can reduce unnecessary tests, leading to cost savings and increased profitability.
- Understanding Revenue Cycle Performance: By understanding their revenue cycles, hospitals can identify opportunities and weaknesses, enabling them to allocate funds and resources more effectively, which can enhance profitability.
- Investing in Effective Technologies: Technologies such as clinical decision support systems can help hospitals monitor utilization and reduce errors, leading to cost savings and increased profitability.
Conclusion
The evidence suggests a strong correlation between improved patient care and profitability. Healthcare institutions can enhance their profitability by focusing on improving patient care, reducing readmissions and unnecessary testing, understanding their revenue cycle performance, and investing in effective technologies.
References
[1]: SCP Health. (n.d.). Enhancing Patient Loyalty and Profitability Through a Connected Care Journey. Retrieved from https://www.scp-health.com/blog/enhancing-patient-loyalty-and-profitability-through-a-connected-care-journey
[2]: Richter, J. P., & Muhlestein, D. B. (2017). Patient experience and hospital profitability: Is there a link? Health Care Manage Rev, 42(3), 247-257. doi: 10.1097/HMR.0000000000000105
[3]: RevCycleIntelligence. (2016). 5 Ways to Increase Hospital Profitability, Aid Revenue Cycle. Retrieved from https://revcycleintelligence.com/news/5-ways-to-increase-hospital-profitability-aid-revenue-cycle
Acknowledgements
The author would like to thank OpenAI, Alphabet, PubMed for providing assistance that facilitated this research.
Conflict of Interest
The author declares no conflict of interest.
Keywords
Patient care, Profitability, Patient experience, Readmissions, Unnecessary testing, Revenue cycle performance, Healthcare technologies.