Optimization of elective services enables significant additional revenue
Why now is the right time to optimize offerings for premium patients
Hospitals are slowly recovering from the pandemic: As incidence rates decrease and vaccination rates increase, the number of elective patients is noticeably rising again. However, most hospitals are still far from full occupancy. Not all beds are occupied. “This is a good time for hospital managers to focus on optimizing elective services,” notes Johannes Braun. Last December, Braun took over the management of the newly established Elective Services division at WMC Healthcare in Munich. And he really knows his way around premium patients: For more than 15 years, the expert has been working in the healthcare sector, specializing in elective services and private clinics. His career path led him from a statutory health insurance company, through a billing service provider, to consulting for hospitals. “These experiences were very helpful in getting to know the entire process around offerings for private patients, self-payers, and international patients in detail,” Braun explains. “Now I work with my clients in the hospitals to adapt to the needs of this clientele, but I also support, for example, in negotiating room surcharges with the Association of Private Health Insurers or optimize the documentation and billing of services together with the employees of the responsible departments.”
“Many hospitals still have some catching up to do in this area,” says Christian Eckert, Managing Director at WMC Healthcare.
The economic situation was already tense before the pandemic, especially for non-profit and municipal clinics. The pandemic then led to a massive decline in elective patients, particularly in these facilities, because patients postponed scheduled procedures whenever possible due to fear of infection during a hospital stay. “In all likelihood, case numbers will take longer to reach previous levels. Therefore, hospital managers should ensure that they efficiently use the possibilities for revenue optimization. Optimizing private health insurance revenues is an important component in this.”
However, before increasing room surcharges, you must also offer something to the patients.
“This starts with service and catering and ends with room design and a pleasant hotel-like atmosphere,” Braun explains. Corresponding renovation and remodeling measures are now easier to carry out. Stations that are currently only sparsely occupied could, for example, be temporarily merged. This way, this area could be redesigned without disruptive construction noise and the coming and going of craftsmen interfering with the course of patient care. “Besides, even after the Corona crisis, the demand for single and double rooms will be higher than before, because keeping distance has now almost become second nature to us.”
Braun can prove that optimizing elective services pays off with an example. He implemented his concepts at a church-affiliated major care provider with 480 beds. “The private patient share was already high at 12 percent, but it wasn’t being optimally utilized,” Braun explains. Together with the clinic, he upgraded the existing elective service stations and established a high-quality elective service concept in the areas of equipment, comfort, service, and catering. Two additional elective service stations were set up to meet the demand. “In negotiations with the Association of Private Health Insurers, we were able to increase the room surcharge for a single room from 106 to 178 euros. For a double room, the surcharge increased from 66 to 87 euros,” Braun calculates. The new price agreement is valid for four years. “Over the total term, the clinic can thus achieve 1.95 million euros in additional revenue.”
Image source: Siloah St. Trudpert Klinikum, Single room, Elective service station