Regional Hospital System
Situation and Challenge
- A hospital holding company noticed a steady decline in admissions and market share over several years in one of its community hospitals.
- The hospital’s once-dominant position in its primary service area was being challenged as patients and physicians became increasingly willing to use competing facilities.
- Blue Ridge Partners was requested to assess the hospital’s current market position, identify the causes of the outmigration and determine how to reverse the trend.
- Followed our The Nine Voices of the Market® approach to interview referring physicians and identify identify/prioritize any service gaps impacting referrals, gauge their enthusiasm for new programs and offerings and identify supporters to promote the hospital within the medical community
- Gathered and analyzed hospital admission trends to determine causes of volume loss within specialties, assess referral patterns from area physicians and identify individuals with highest potential for referral increases
- Assessed community perception and visited competitor hospitals
- Synthesized our research and identified crucial service and quality gaps that were contributing to referral physician dissatisfaction and discovered that the hospital’s efforts to build local physician relationships were not as effective as previously thought.
- Developed a strategy and implementation plan including closing service gaps, building relationships with a subset of receptive referring physicians and leveraging the medical staff to reach out to the community to promote hospital capabilities and quality of care.
- The strategy, with immediate and longer term growth initiatives, is targeted to drive growth and restore a 20% share in the primary service area
- In the words of the CEO, “Blue Ridge Partners was able to quickly analyze the performance of the hospital, target improvements in revenue growth and prepare an action plan with clearly assigned responsibilities so I can monitor implementation. Through these actions, I expect we can at least double our revenue growth rate.”
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