It’s a critical question for any non-urban hospital:
“How much revenue are we losing because of outmigration?”
FREE Outmigration report for your hospital. Contact us at 615-425-0821 or email firstname.lastname@example.org.
To answer it, Brentwood Communications recently conducted a research study of 40 non-urban community hospitals, ranging in size from 25 to 225 beds, across the country.
Using Medicare data available on the America Hospital Directory website, we determined the market share revenue generated in the top three zip codes for each hospital. Armed with this information, we then calculated the total healthcare charges leaving each hospital’s service area.
The results, to say the least, were revealing.
First the bad news.
The average total charges leaving the hospital’s service area for care elsewhere for the year surveyed was over $424 million.
Fortunately, that number also represents an enormous opportunity.
Just by increasing market share 1 percent, each hospital on average would generate more than $10 million in additional revenue.
Creating an effective marketing and advertising campaign that communicates the technology, services and high level of care your hospital provides is a proven way to increase market share. And with the potential rewards so substantial, an advertising and marketing campaign should not be viewed as an expense but as an investment that can yield significant bottom-line results.