Today’s hospital patients are also consumers. They want the best possible overall experience when seeking care. Hospitals that offer a superior patient experience can expect to achieve up to 50 percent higher margins—better than they can achieve by cost cutting alone. The correlation between happy patients and healthy margins is growing over time, so the financial benefit associated with an improved patient experience can be expected to increase. By taking steps now to make their patients happy, hospitals will secure a healthy financial future for themselves.VIEW ARTICLE [PDF]
To examine the relationship between patient experience and hospital financial performance, Accenture analyzed hospital income margin data reported to the Centers for Medicare and Medicaid Services (CMS) and survey results from the Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS), a widely used measure of patient experience.
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Hospitals that offer patients a better customer experience tend to perform better financially.
Hospitals rated a 9 or 10 on HCAHPS are more likely to have higher margins.
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The correlation between patient experience and higher margins is nationwide and exists across all hospital types.
However, urban hospitals achieve roughly eight times the margin increase of rural hospitals, suggesting that urban hospitals with a superior customer experience achieve nearly double the margins of an average-experience hospital.
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The “happy patients, healthy margins” correlation is nationwide across all hospital types.
Hospitals could achieve financial success through patient-centric enhancements rather than by cost cutting. Among the top 20 percent of patient experience performers both revenues and costs are growing at an above-average rate, and revenue growth is outpacing growth in operating expenses.
This correlation is historical and growing over time. As health consumers increasingly factor experience into their care choices, the financial benefit associated with patient experience can only be expected to increase.
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Margin improvements in hospitals that are patient experience top-performers are due more to revenue growth than cost cutting.
WHY DO HAPPY PATIENTS MAKE FOR HEALTHY MARGINS?If you invest in and leverage patients' loyalty you will find that your margins improve and your growth improves.
HOW TO MOVE TOWARD A NEW TYPE OF PATIENT ENGAGEMENTConsumers are used to engaging in the world in a way that makes their voice heard, and the healthcare space is no exception.
Hospitals that move swiftly to adopt patient experience and digital health best practices will be best positioned to improve their reputations, reap the financial rewards and outperform their peers.