In Savannah, Ga., 543-bed Memorial University Medical Center moved to combat sluggish operations in 2009 and 2010 by expanding cancer and neurosurgery services, two profitable business lines… Research Article Health Affairs Vol.24 No.3 Making Profits And Providing Care: Comparing Nonprofit, For-Profit, And Government Hospitals The most profitable markup was for the supplemental classification, with an average markup of 435%. h e a l t h c a r e Article at a glance The markups of payment over cost were, as to be expected, much smaller. Fast Facts on U.S. At not-for-profit and public hospitals, median operating cash-flow margins, a key measure of profitability, dropped to 8.1 percent in 2017. Choosing the right service lines to emphasize requires a superior understanding of a hospital’s economics and competitive environment. That's another service line that appeared to take flight in 2016. With these systems in place, setting a budget for patient acquisition becomes easy, as you’ll know exactly how much you can spend to generate a predictable flow of patients to the hospital’s most profitable service lines. Infectious disease was least profitable when measured by charges, with an average markup of 114%. Disclaimer: I live in the United States. Hospitals, 2020. The results we’ve seen by following a focused service line … the successful implementation of a service-line strategy is no mean feat. While some hospitals struggle with low occupancy and limited access to capital, most hospitals have good access to capital because of strong all-payer profit margins. The American Hospital Association conducts an annual survey of hospitals in the United States. hospital bond offerings in 2015, 2016, and 2017 of $24 billion, $38 billion, and $35 billion, respectively. Considerations must be made for the supplies of course, the utilities, the physical resources-i.e. 13 ... 400+ bed tertiary hospital Not-for-profit E.g. The previous hospital I was doing an away was apparently going to adopt the cleveland clinic model for service lines. hospital charge markup was at least 100% for all DRGs. The hospital generates money mostly independent of what the professional fee is for the physician. All … Rankings (1=highest growth, 5=least growth) 1 Includes oncology surgery SOURCE: Objective Health Market Volume Explorer . Critical Success Factors for Clinical Service Lines: Line management structure and responsibilities System support at all levels (e.g. MetroHealth , for example, opened such a site in the Cleveland area at a cost of about $48 million. Hospitals also need to overhaul the management of both strategic and nonstrategic service lines. 22 It is important that a new model be introduced into service line development. service line P&Ls) Clinical team orientation Clinician outreach and access Sales oriented staff Adequate budget and dedicated resources The ones which have the highest return for the expenses put forth to have them.