Corporate Fitness & Wellness Today wonders if “wellness hospitals” are on the horizon.
A McKinsey Quarterly report says U.S. hospitals being “battered by the competition” are trying to be all things to all patients — and that’s no longer a viable strategy.
Key findings:
- One way hospitals can more effectively compete with smaller, more focused competitors is to organize themselves by service line, focusing on building world-class capabilities in just a few clinical areas.
- Hospitals that succeed with this strategy can reap tremendous fiscal benefits while enhancing their ability to serve their communities. But as three disguised case studies show, the successful implementation of a service-line strategy is no mean feat.
- Choosing the right service lines to emphasize requires a superior understanding of a hospital’s economics and competitive environment. Hospitals also need to overhaul the management of both strategic and nonstrategic service lines.