10 Mistakes Most Hospitals Make That are Costing Millions in Lost Revenue 

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September 21, 2022

Did you know that the average hospital loses millions, if not billions of dollars in revenue due to mistakes every year? 

Many of which are preventable.  

By understanding the top 10 most common mistakes hospitals are making and taking the proper steps to avoid them, you can improve your bottom line, increase your revenue, and provide better care for patients. 

Are you making any of these 10 mistakes?

1. Cost focus issues

Hospitals have benefitted from a cost focus in the past, having healthy margins in spite of reimbursement cuts. However, thanks to a lag in revenue cycle performance, it now costs more simply to achieve flat performance. This costs the average 350-bed hospital $22 million in lost revenue capture opportunities.

With an understanding of the real cost of each patient visit and where money is left on the table, hospitals can focus on revenue growth strategies rather than just trying to keep their heads above water.

2. Lack of strategy

You have a vision, but just can't figure out the strategy needed to get there. 

Maybe you have a small team that can execute, but doesn't have leadership to guide them. 

It can be hard to know if the tactics you're using are the right ones without a clear strategy in place. 

A lack of strategy can cost hospitals millions in wasted resources, time, and opportunity. If you don't have a clear plan for where you want to be and how to get there, it's time to develop one. 

Getting input from experienced healthcare strategists, like our fractional CMOs, can help you form a plan that will work for your hospital.

3. Failure to monitor the right metrics

Are you unsure which metrics you should be monitoring? 

Maybe you’re getting the statistics, but don't know what to do with them. Or, you're lacking documented standard operating procedures, making it hard to train new marketing team members. 

Not monitoring the right metrics can cost your hospital in terms of time, money, and resources. 

You need to be able to track progress and know which marketing activities are working so you can continue to do more of what's working and less of what isn't. 

4. Not setting a clear goal

Are your 1, 3, 5, and 10-year goals clearly articulated? Is your team aware of your vision? You can't get results without clearly quantifying what they would look like. 

Not setting a clear goal can cost your hospital time and money as you try to figure out what success looks like. 

It's important to set SMART goals that are Specific, Measurable, Achievable, Realistic, and Time-oriented. 

Your team should also be aware of your goals so they can work toward them and help hold you accountable. 

5. Lack of training

You may have a great team in place, but if they're not properly trained, they won't be able to perform at their best. Lack of training can cost your hospital money as you try to figure out why things aren't working and how to fix them. It's important to provide ongoing training so your team can keep up with the latest changes and trends. 

If you're not sure how to train your team or what they need to know, consider hiring a fractional CMO who can help you develop a training plan. 

6. Not staying up to date with technology

If you're not using the latest technology, you're at a disadvantage. Technology can help you automate tasks, stay organized, and improve communication. Not staying up to date with technology can cost your hospital money as you try to catch up with the competition. 

It can also create holes in your cybersecurity, costing you even more money if you're hit with a data breach. 

Don't wait until it's too late to update your technology. Keep an eye on the latest trends and adopt new technologies as they become available. 

7. Failure to adapt to change

Change is a constant in the healthcare industry. If you're not prepared to adapt, you'll be left behind. Not adapting to change can cost your hospital money as you try to catch up with the competition.

For example, have you hopped on the telehealth wave? If not, or if you stopped after the height of the pandemic, you're missing out on a huge opportunity to reach more patients. 

It's important to be proactive about change and embrace new technologies and processes as they become available. 

8. Not leveraging data

Your hospital has a lot of data, but are you using it to your advantage? 

Data can be overwhelming, but it doesn't have to be. Start small and focus on one area at a time. As you become more comfortable with data, you can start to use it in more areas of your hospital. 

Data can help you understand your patients, identify trends, and make better decisions. Not leveraging data can cost your hospital money as you miss out on opportunities to improve. 

9. Ineffective communication

Poor communication can cost your hospital money in a number of ways. 

For example, are you being specific in your task assignments? Instead of generally voicing your plan and tasks that need to be done at every meeting, are you being clear on who will do what by when? 

Ineffective communication can also lead to errors, which can cost your hospital time and money. 

It's important to have a clear and concise communication strategy in place. Make sure everyone on your team knows what the plan is and how they can help.

10. Hiring a general marketing team that doesn't focus on your niche

When it comes to healthcare marketing, you need a team that understands the unique challenges and opportunities that come with marketing a hospital. 

A typical agency may not be familiar with the regulations and compliance issues that are specific to healthcare. As a result, they often make mistakes that cost your hospital money. 

When you hire a Bizzuka fractional CMO, you no longer have to worry about these mistakes. We’ll help you nail down your strategy, monitor the right metrics, manage your team, grow your patient/client base, and more.

You’ll get all the benefits of hiring a full-time CMO, at a fraction of the cost. This is because we work for you on a part-time basis, so there’s no need to pay an additional employee a full-time salary plus benefits. 

Interested in learning how we can help you specifically? Book your free 45-minute marketing diagnostic consultation with us today.