The Crucial Role of Employee Engagement in Elevating Hospital Performance
The decision to enter the Healthcare Industry isn’t one that’s made lightly -- the shifts are long, the demands are high, and the sacrifices are many. So, when someone chooses a career in healthcare, chances are, it isn’t because they’re fascinated with profit margins or have a deep passion for reducing operating costs. More than likely, it’s because they want to change the world by saving one life at a time. But, the truth is, these are not mutually exclusive ideas.
In order for a hospital to provide the highest quality health care, with the best staff and technology available, they must also be profitable. On the other hand, profits mean nothing without results. The key to achieving both lies in creating a Culture of Engagement.
We have written extensively on the benefits of employee engagement from the patient’s perspective – reduced mortality rates, shortened hospital stays, better service, etc. – but today’s article will focus on the huge role employee engagement plays in profitability. To do this, we’ll need to take a look at two core areas essential to increasing profits -- revenue and costs.
Elevating revenue in healthcare can be best achieved by prioritizing patient experience through the cultivation of a Culture of Engagement. A highly engaged team not only boosts patient satisfaction but also drives increased profitability. According to a recent Harvard Business Review article, organizations fostering high levels of engagement are poised to enjoy financial margins that are 5% higher than their counterparts with lower engagement levels.
That’s not the only favorable outcome they experience:
- Hospital-Acquired Conditions (HACs) reduce by 13.3% and readmissions occurring within 30 days see a decrease of 3.22%
- Patient safety increases by 15% compared to organizations with low levels of employee engagement
- Quality of health care increases by 95%
These elements substantially enhance patient satisfaction and experience, leading to profit growth through heightened patient loyalty, increased referrals, elevated average HCAHPS scores, and various other contributing factors. But, for the purpose of this article, let’s take a look at just those few:
- Patient loyalty increases significantly, and as a result, in-patient referrals skyrocket in excess of 50%
- HCAHPS see an increase of nearly 97%
Profits increase just as much from reducing costs as they do from increasing revenue. And, when an organization has fostered a Culture of Engagement, they experience reduced costs across the board. This is exceptionally important in the Healthcare industry, where mistakes can be quite costly – both in lives and dollars.
In 2015 alone, the federal government cut $371 million worth of Medicare payments to 721 hospitals, due to their high rates of HACs. That same year, they also fined 2,610 hospitals for having excessive readmission rates. While turnover is costly for any industry, it’s especially damning for healthcare providers. In the nursing department alone, turnover can cost a hospital 5% of its annual budget.
Those figures can be – and are – overwhelming for healthcare providers. Luckily, employee engagement can drastically reduce these costs (among many others):
- Worker's Compensation claims can reduce by as much as 61%
- Safety accidents reduce by as much as 70%, while absenteeism shrinks by around 41%
- Medical errors, which are believed to be the number three cause of death in the United States, drop by nearly 50%
- Turnover Rates decrease by over 31%
Start Increasing Your Profitability Today
As we conclude our discussion on the pivotal relationship between employee engagement and profitability in the healthcare sector, the profound impact is evident—ranging from cost reductions to substantial revenue growth. With an extensive 85-year history in the engagement industry, we've had the privilege of collaborating with numerous healthcare providers. Our decades of experience involve tailoring solutions that not only elevate quality and team engagement but also demonstrate tangible financial growth.
For deeper insights into the multifaceted benefits of employee engagement within your organization, we encourage you to peruse our complimentary whitepaper, titled "Employee Engagement Matters (a lot!) in Healthcare." This resource not only imparts valuable information but also serves as a catalyst for initiating discussions about the pivotal role of employee engagement within your company.
If you're already acquainted with the transformative power of employee engagement and have questions, please don't hesitate to reach out. Our team of experts is dedicated to assisting you in fostering team engagement, reducing costs, and amplifying profits—a mission that aligns with the noble cause of positively impacting and saving lives.
C.A. Short Company collaborates with organizations to effectively oversee, stimulate, and facilitate heightened employee engagement, aiming to boost financial performance, productivity, quality, and essential performance outcomes. Our platform, rooted in research and a structured process, empowers executives and managers to actively involve their teams, thereby enhancing the bottom line, inspiring staff, and encouraging positive behavior. If you're interested in a Complimentary Consultation, kindly click here.