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Superior Customer Experience Correlates to 50% Higher Hospital Margins

Superior Customer Experience Correlates to 50% Higher Hospital Margins

Accenture recently published an analysis on customer satisfaction from the Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS). Here are some key findings from the report:

  • Hospitals that deliver “superior” customer experience have 50% higher net margins than average hospitals.
  • The margin increase at urban hospitals is roughly eight times that of rural hospitals.
  • Academic hospitals had a 2.1% margin increase per 10% increase in HCAHPS score in 2013.
  • Margin increase correlated to a 10% consumer experience improvement grew 70% from 2008-2013.
  • Among the top 20% of patient experience performers, revenues grew 10.9% and costs grew 7.8% in 2013.
  • For profit hospitals had a 3.3% margin increase per 10% increase in HCAHPS score in 2013.

Source: Accenture, May 11, 2016

The Average Hospital Operating Margin in 2013 was 3.1%

2013 Hospital Operating Margins

Systems With Negative Operating Margins Average Operating Margin
2011 12.6% 3.4%
2012 9.5% 3.6%
2013 14.5% 3.1%

Source: Modern Healthcare

June 23, 2014 | Categories: Cost,healthcare,hospitals | Tags: , , , | Comments (0)