How do you go from a traditional business model to one that is based on volume? That’s a question being asked a lot these days in the healthcare industry and one that was addressed during the Maine chapter of the Healthcare Financial Management Association’s annual meeting last week in Rockport, Maine.
Did attendees come up with the answer to the question that is bedeviling the industry? No. But they were given some solid leads.
“It’s daunting,” said presentation leader, Michael Lincoln, executive vice president of Chicago-based Lillibridge Healthcare Services. “It’s kind of like rebuilding your ship while you’re under way at sea.”
Lincoln offered five key points healthcare executives should focus on to help them pilot their ships through the rough seas of business transformation.
- Embrace innovation: Innovation is often misunderstood, Lincoln said. It doesn’t have to be a big, blockbuster idea but it does have to become part of your organization’s culture. “Innovation comes in lots of different sizes and shapes and building an innovative culture is more than saying, ‘OK. We’re going to have an innovation committee,’” he said. “It takes a number of things but really requires the involvement and the empowerment of the frontline people. That’s where the ideas come from.”
- Communicate value: Create a value proposition. Do it by the team, by the unit, by the whole company, but do it, Lincoln said. “Creating a value proposition gives you focus,” he said. “In the world that we’re going to, this is going to serve everybody in this industry well.” A value proposition should be the cornerstone strategy and be core to all your organization’s communications.
- Enhance financial and operational flexibility: Partner for strength and flexibility, Lincoln said. “Look for other partners that bring things to the table that you might not have.”
- Manage event risk: There are two critical elements when it comes to managing risks, Lincoln said: flexibility and diversification. Your organization has to be able to meet the market as it develops.
- Maintain a patient-/client-centric culture: Focus on the patient/customer experience. Meet and exceed their expectations. Even small changes can make a huge difference.