Part 11: Creative strategies for revenue generation: an example
Not long ago, I helped one of our local hospitals develop an enhancement to an existing program. I had been asked to consult with a wound care program from a psychiatric perspective on the relatively high percentage of patients who were noncompliant with their treatment regimens.
I became fascinated with the issue as I wondered why patients would not want their wounds to heal! I implemented a pilot study and gave simple psychological tests to patients, discovering that many were clinically depressed and this is what accounted for their lack of compliance, based on their belief their wounds would never heal. he findings allowed the department to develop an psychiatric intervention component to the program and to bill for services rendered by the psychiatrist and psych NP who began to work with the program.
Can any of you think of a similar idea for generating revenue?
There are many opportunities for money-making ventures that we never think about. Often we are allowing other businesses to make money on our efforts and that represents giving money away. One great example is home health. For years we referred patients to external home health agencies until, one day, someone said, "Why don't we do it ourselves?" and the hospital-based home health agency was born!
Not all new ideas will make money or even have revenue attached to them. Often the new ideas we come up with and implement will serve other purposes. Some will improve patient care significantly, others will save money though not generate any, still others will enhance the image of the organization, while some are "loss leaders" and get people in the door who will then avail themselves of our other services.
Unhappily, generating revenue and making money are not usually considered a bonus. Most of our programs, products, and services need to have positive cash flow and at least some profit margin as the excess of revenue after expense is needed to grow the organization, to support those services that lose money, and to offset bad debt. Nonetheless, making money is a collaborative effort and the "idea" person is just as important as the "implementation" person.
All new initiatives are important to the business-minded nurse leader and there are projects that are important and viable but do not make much money-though certainly most will need at least to break even if you wish to have them supported by administration!