Healthcare consumerism, shrinking reimbursements and other challenges
The challenges healthcare organizations face in their market can impede their success if not confronted. Some of the obstacles in their communities include changing demographics, increased competition and healthcare consumerism. For example, rural and community hospitals often find they have a limited opportunity to capture commercial business. This is because the competition is no longer just the neighboring hospital. It now includes telehealth companies and providers in other states or even countries, as well as large out-of-state healthcare organizations that may partner with local hospitals.
Knowing and understanding a healthcare organization’s market is essential to its growth. Without this knowledge, hospitals cannot strategize to tackle the challenges its competition brings and evident shifts in its community. Whether they face demographic changes, declining reimbursement or consumerism, a market-driven approach gives healthcare organizations the potential to succeed despite the obstacles.
With the growing reality of consumerism in healthcare, patients and potential patients demand more from a healthcare service and quality perspective than ever before. They also have access to companies like Walmart, CVS and Walgreens that offer low-cost prescriptions and basic primary care services that are efficient and cost-effective. Many times, these companies even choose to send their own employees to seek care from providers and organizations outside the market. There’s also the unfair and often incorrect notion that larger hospital corporations provide not only more, but also better services.
Your Potential to Thrive
Understanding an organization’s market is a key step in making strategic decisions today that can have profound future effects. When confronting these challenges, it’s vital to use high-quality data along with experience from markets across the country to allow for a solid market-driven approach.
When evaluating a healthcare organization’s market, these five questions can help prepare you to take the best approach:
At QHR, our goal is to help healthcare organizations like yours fully understand the market and move forward strategically. To do this, we plan an overall three-step approach.