It may sound counterintuitive, but hospitals that reduce the number of healthcare services they provide are better able to sustain long-term success. This doesn’t mean these hospitals don’t add new services, which are imperative to support the community needs. What it means is these hospitals constantly evaluate the profitability of the services they offer against the needs of the community. Finding balance is the key to long-term profitability.
This is particularly true for rural and community hospitals, many of which are struggling to remain profitable and are facing declining patient volumes. Often, the decline in patient volumes is due to the mix of services the hospitals offer.
When hospitals attempt to offer too many services or fail to adjust the services they offer to meet the changing needs of the community, they end up in financial distress due to a simple imbalance between supply and demand. This occurs when there aren’t enough members within the community in need of the services the hospital provides.
By focusing on the needs of the community and providing the services with the greatest need, rural and community hospitals are able to find a balance that enables them to maintain long-term success.
NewLight Healthcare specializes in helping turn around rural and community hospitals and set them on a path to long-term profitability and success. One of the critical steps to transforming a struggling hospital is evaluating and optimizing the services they offer. It is quite surprising to see how many struggling hospitals continue to provide services the community no longer needs and fail to offer new services.
To learn more about NewLight Healthcare and its approach to helping struggling hospitals grow to success, click here.
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