Strategies for Kerala's charitable trust hospitals – Part 6
In my previous articles I had described why most charitable trust hospitals make the huge mistake of increasing their infrastructure significantly in a short period of time.
There are several reasons that drive charitable trust hospitals to make this mistake. Some of them are outlined below:
- The belief that the hospital is full and is turning away many patients due to a lack of consulting rooms, operation theatres, inpatient (IP) beds, etc.
- The need to compete in size with new or existing competitor hospitals
- The desire to reduce construction costs
- The belief that a good ambience can only be provided in a new building
- The belief that hospital staff efficiency will improve with a single new block rather than the existing multiple, smaller blocks
Misplaced priority
Let us examine the fourth reason - the belief that a good ambience can be provided only in a new building.
One of the most common mistakes made by charitable trust hospitals is believing that their patients need a premium ambience which is only possible in a new modern building.
This is mainly caused by the feedback from richer patients who come to the charitable trust hospital and compare its ambience with new premium hospitals that they also visit.
The bulk of the patients coming to a charitable trust hospitals would be quite happy with such a premium ambience if the treatment rates are low – they would not be happy if the charitable trust hospital provides them with a premium ambience at premium treatment rates.
As mentioned in my earlier article, if the charitable trust hospital decides to build a new block before it is required to provide a premium ambience, this will lead to taking of term loans and lower capacity utilisation leading to higher treatment rates.
If the charitable trust hospital feels the need to improve the ambience for its patients, it can do so by renovating the existing buildings – this will improve the current ambience significantly without the need for a new building.
Use cost-effective methods
It is quite possible to give a near premium ambience in a cost-effective manner by renovating an existing building using the following methods:
- Improving the audio environment by adding sound absorbing ceiling, walls, and flooring, reducing equipment noise, and playing music
- Improving the visual environment by allowing natural light, nature views from windows, and displaying artwork
- Improving temperature control by providing air conditioning in corridors, waiting areas, wards etc.
- Improving wayfinding by adding proper signage, floor plans and information desks
- Improving toilets by changing the sanitary fittings, flooring, and walls
- Improving flooring and walls of corridors, waiting areas etc.
- Providing ergonomic sitting arrangements in waiting areas
This will allow the charitable trust hospital to improve its ambience without having to increase its treatment rates.
I will examine the other reasons for wrong decisions being taken by charitable trust hospitals in my subsequent articles.
(To be continued)
The author is the founder and CEO of Results Consulting Group. He is a recognized thought leader on helping entrepreneurs build and implement significant and lasting competitive edges in India and the GCC. The views expressed are personal. Email: [email protected], website: www.we-deliver-results.com