Marc Halley, CEO of Halley Consulting,
COMING IN late June, 2008
Synopsis: Although many hospitals have acquired primary care practices in the past several years, few have successfully implemented a retail strategy based upon building relationships with consumers at the retail primary care practice level. Many CEOs have remained hospital-centric, depending upon the “build it and they will come” strategies of the past. Few have successfully managed their supply chains with the consumer in mind, and few hospital CEOs have been satisfied with the results of their investment in primary care practices. Many are considering or have abandoned their acquired practices as a failed strategy. Yet those CEOs who choose or are forced to retain their primary care networks, who develop a retail strategy and manage their supply chains, are proving to have selected the most sustainable competitive strategy.
"How to Break Even on An Acquired Primary Care
Synopsis: Challenged by declining revenues, hospitals are taking
steps to improve the financial performance of hospital-owned primary care
group practices. Although some hospitals are divesting themselves of
their group practices, others are attempting turnaround strategies to help
them break even on their investment. Ensuring that expenses do not exceed
revenues in a primary care network can be achieved by implementing
initiatives on network wide and practice site levels and may require
draconian measures. By setting a financial target of break-even, primary
care practices can experience dramatic improvements.
Published October, 1999, with co-author
Synopsis: Although hospital-owned primary care practices have been
unprofitable for most hospitals, some hospitals are achieving competitive
advantage and sustainable practice operations. A key to the success of
some has been a net income reporting tool that separates practice
operating expenses from the costs of creating and operating a networked of
practices to help healthcare organization managers, physicians, and staff
to identify opportunities to improve the network's financial performance.
The "Net One, Net Two" reporting allows operations leadership to be held
accountable for Net One expenses and strategic leadership to be held
accountable for Net Two expenses.
Andrew Halley of
Synopsis: This original study tested the hypothesis that an orthopedic surgeon and his or her staff can efficiently and economically provide a bone densitometry service. This hypothesis reflects a philosophy that orthopedists should take a more active role in identifying patients at risk for osteoporosis. We evaluated the cost-and time-effectiveness of an orthopedic surgeon and his medical assistant in completing reports and related correspondence for dual-energy x-ray absorptiometry scans conducted in an orthopedic subspecialty clinic. Cost analysis showed that completing 14 or 15 reports per month was required to break even and that completing up to 40 reports per month was a highly efficient and economic use of the surgeon’s time.
The Primary Care - Market Share Connection: How Hospitals Achieve Competitive Advantage
The Primary Care - Market Share
Connection: How Hospitals Achieve Competitive Advantage discusses
how to get back to the basics by focusing on where patients enter the
healthcare "demand chain" and how to meet the needs, wants and priorities
of key decision makers. It outlines strategies for developing
partnerships - between employed and affiliated primary care physicians,
ambulatory specialists, facility-based doctors and hospitals - that lead
to capturing and sustaining market share.
Read some of the reviews...
"In a healthcare
environment focused on specialty service line development, complex joint
ventures, and other transactional arrangements with physicians, this book
reminds us of a fundamental principle: healthcare is all about
relationships, and the primary care physician plays a key role in the
healthcare relationship equation. Even the most successful healthcare
systems will find pearls of wisdom in Marc's book, especially in his
discussions of relationship management and service excellence."
"This book is a landmark
addition to the field of hospital management. Bringing a fresh
perspective on the primary drivers necessary to successfully compete in
the healthcare marketplace, the book exposes the flaws of traditional
hospital management thinking and better identifies the strategic
foundation required to compete in a consumer-driven environment."
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