Foresight Industry Research Institute's "China Private Medical Industry Market Outlook and Investment Strategy Planning Analysis Report"
There are many problems in the management of private hospitals, such as insufficient profitability, lack of standardized systems, and low operational efficiency. How can these problems be solved to help private hospitals achieve greater development?
Standardization is a prerequisite for private hospitals to grow and provide high-quality services to patients. Standardization mainly focuses on financial, operational and clinical aspects. Taking the clinical aspect as an example, the core of standardization is to provide patients with the most reasonable treatment through standard clinical protocols and clinical
paths, and to use standard clinical indicators and assessment reports to measure treatment results, providing a solid factual basis for continuous improvement of healthcare services.
With standardization in mind, private hospitals can adopt expansion strategies to replicate successful operational models. Each specific expansion strategy has specific applicable conditions and timing, as well as corresponding implementation steps. If geographic expansion is chosen,
it requires assessing the target regional market, understanding market supply and demand, and choosing the right local collaborators to partner with. If you choose mergers and acquisitions (M&A), you will need to screen acquisition targets, assess acquisition risks, complete due diligence and cash flow estimation
, and do a good job of post-merger integration.
Continuous optimization is the key to improving operational performance as a hospital expands, e.g., better meeting patient needs, acquiring more patients, and optimizing cost structures. In order to avoid falling behind in the ever-increasing competition in the future, hospital management must continue to optimize its internal operations in both financial and non-financial areas to maintain steady growth once it has standardized and expanded its operations.
Of these three core elements, standardization is a challenge that private hospitals are already effectively facing, with financial standardization being a top priority. The early development of most private hospitals relied solely on the ability to provide medical services
Power. But as hospitals grow in size or establish branches, financial and operational standardization becomes a shortcoming. Most Chinese hospital managers come from a medical background and have long focused on clinical service delivery and team
building, but lacked a systematic approach to management and specialized management capabilities, not to mention standardization of financial management.
Financial indicators can be divided by management level into indicators for hospitals, functional departments, and specific operational levels, and each indicator can correspond to a specific managerial operator or medical worker at each level. This top-down standardized financial management can help hospital operators, who were previously not very good at financial management, to obtain systematic tools to optimize financial operations.
At the same time, financial data collection at the hospital group level is still a passive top-down model. Groups need to chase data from departments, pharmacies and other functional departments in different branches. This process is long and complex, and the data obtained at the end of the process often lacks transparency, accuracy and systematization. However, if we establish the whole process as a bottom-up automated data collation and reporting, supplemented by a professional customized management software system, key financial data can be reported on a regular basis and on time, so that the group level can collate and analyze the financial information in the first time, which greatly improves the accuracy of the data and the management effect. With the expansion of the hospital's scale and the increase in the number of affiliated branches, the direct contribution and effect of this management process optimization will also be highlighted.
Based on numerous in-depth studies of China's private hospital market, private hospitals are still at the beginning of a period of rapid development. With the further drive of policy, market demand and capital power, the development prospect is
picture bright. However, when private hospitals enter the fast track of development, the problems mentioned in the article are still prevalent in operation and management. Most hospitals have neglected to standardize and continuously optimize their operations, and their business expansion has been somewhat blind. In the early stages of development
these problems may seem small, but they will become more and more of an obstacle to development as the scale increases. We suggest that private hospitals should also think carefully about how to improve performance management when they are rapidly financing and achieving growth in scale, so as to lay a solid foundation for the hospital's
scale development and efficient operations in the future.