By Jon Headlee, President Ten Adams
Today’s hospital CEOs are suffering from a number of significant challenges. Healthcare is stuck in the middle of a revolution that seemingly has no end. According to a recent American College of Healthcare Executives (ACHE) survey, the top 4 challenges for hospitals in 2011 are:
- 77% - Financial challenges
- 53% - Healthcare reform implementation
- 32% - Governmental mandates
- 31% - Patient quality & safety
What to do? What to do? According to ACHE (and Ten Adams by the way) the answer is to INNOVATE! According to the report, developing a culture of innovation will help hospitals cultivate the visionary leaders and implement the management systems they need to improve the healthcare they provide, and do it more efficiently. Hospitals need to:
- Initiate the quest for innovative solutions by establishing empowered R&D teams led by passionate, C-Suite team members.
- Encourage the adoption of original ideas and insights by fostering an information exchange among all hospital staff, and business experts outside the organization.
- Establish and encourage new thinking and decision-making processes that enable management to overcome seemingly intractable operational and ethical issues, with the goal of improving quality and cultivating promising healthcare leaders.
In other words, hospitals need to foster innovation inside their own 4 walls, amongst their doctors, nurses, administrators and all other personnel. A culture of innovation will not only help the employees become engaged and more effective in their jobs, but it will also encourage them to be more motivated, efficient, perform at a higher level, and provide patients with better quality of care. A patient who believes they are receiving the best quality of care and the best value will be a repeat patient for life and a powerful advocate for the organization.
In all business, innovation is the catalyst to growth. Every business needs an innovation engine to generate great ideas that will move the business forward. Significant innovation creates competitive advantage and it goes without saying that competitive advantage is the life-saver for hospitals in this highly competitive healthcare environment.
What is innovation and how can a culture of innovation help hospitals in these tough economic times? Innovation is the commercial application and successful exploitation of an idea. In business, this could be:
- improving or replacing business processes to increase efficiency and productivity
- developing entirely new and improved products and services to meet rapidly changing consumer demands or needs
- adding value to existing products, services or markets to differentiate the business from its competitors and increase the perceived value
Innovation will help you:
- improve productivity
- reduce costs
- be more competitive
- build the value of your brand
- establish new partnerships and relationships
- increase turnover and improve profitability
Want an example of innovation in practice? Take a look at The Innovation Center at Columbus Regional Hospital.
For the past several years, Columbus Regional Hospital (CRH) has used innovation as its central growth strategy. They innovate in everything they do, from delivering medication to patients, to serving drinks in the cafeteria. Innovation allows them to deliver the best patient care and helps distinguish them from their competition.
"When we talk about innovation we mean the process of using new ideas to make something better and solve problems," said Lynne Maguire, Vice President of Planning & Marketing and Chief Strategy Officer. "Sometimes it is to make something new, and sometimes it is to improve an existing process."
Maguire is chief strategy officer at the 225-bed Columbus Regional Hospital 50 miles south of Indianapolis, which recently opened an 18,000-square-foot Innovation Center. The goals of the center are considerable: differentiate the organization in the marketplace, enhance staff recruitment and retention, provide better patient outcomes — and serve as a model for other hospitals looking to build their own innovation programs.
"Organizations that can rapidly improve, rapidly adopt best practices and rapidly innovate are going to have strategic advantages," Maguire says.
The time is NOW to introduce a culture of innovation. The organizations that embrace this concept will be the hospitals + healthcare systems that guide the healthcare industry into a new dawn of health delivery in the 21st century.
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