The turbulent healthcare market is forcing healthcare managers to manage people and resources more effectively. Organising asset management smartly boosts performance, improves returns and healthcare revenue. Due to better performing and more profitable buildings, installations and medical equipment, you unite healthy business management with higher quality, more accessible and affordable healthcare. Your hospital is transformed and able to use flexibility of capital goods with financial clout.
In the transition from supply driven to demand driven healthcare, a new hospital landscape has emerged. In this landscape healthcare itself has also changed under the influence of faster treatment methods and technical innovations. Healthcare used to be randomly organised around medical staff, but increasingly patients and financers are becoming more important partners to the hospital. This changes the hospital from being a utility service into a ‘normal’ business with serious operating risks and other business aspects e.g. increased marketing to cope with in addition to difficult choices in the force field of healthcare services, medical specialists and health insurers.
The consequences of these developments for the hospital organisation are becoming increasingly evident. Where the hospital’s revenue model could once be associated with more or less an ‘occupant days factory’, this is now shifting to add additional revenue generators e.g. diagnostics, complex interventions and building related income streams. That leads, among others, to different demands on housing and medical equipment, which are not easy to finance, particular if they do not respond to future developments. This demands proactive leadership in which the healthcare vision is linked to the smart deployment of capital goods.
Control of your assets
As a director in healthcare, you are also the ‘asset owner’, with final responsibility for among others, all real estate, installations and equipment. The value of these capital goods changes during the lifecycle, whereby they have a limited life as ‘value drivers’. In order to optimally benefit from ‘the assets’ of your hospital, it is sensible to manage their deployment based on their use, but also based on their ownership.
With the correct information, you can optimise performance, costs and risks of these assets. The more accurately this information is organised, available and transparent, the better your ability to make the correct consideration between healthcare returns, risk acceptability and long term profitability. This will widen the perspective of your decision and link it directly to your organisation’s goals.
However logical the above sounds, value-driven asset management is not commonly used practice at most hospitals. A hospital mainly operates on the basis of care & cure for and by people, and it is evident that value retention and maintenance of buildings, installations and medical equipment plays a second fiddle to the main purpose of care and cure. However, patients’ lives not only depend on the skills and knowledge of doctors and nurses, but also on the expertise of the technical department and the functioning of the equipment in their care.
Please download the whitepaper ‘Value optimisation of strategic operating assets in healthcare’, which offers you more insight into the professional structuring of an effective asset management organisation.