Harvard Case - Be Well Hospitals: Service Excellence in Secondary Healthcare
"Be Well Hospitals: Service Excellence in Secondary Healthcare" Harvard business case study is written by Piyush Kumar, Sonia Mehrotra, Geetika Shah. It deals with the challenges in the field of Service Management. The case study is 21 page(s) long and it was first published on : May 20, 2020
At Fern Fort University, we recommend Be Well Hospitals implement a multi-pronged strategy focused on service innovation, customer experience management, and operational excellence to solidify their position as a leader in secondary healthcare. This strategy will involve leveraging technology, fostering a culture of service excellence, and strategically managing their service portfolio to meet evolving patient needs.
2. Background
Be Well Hospitals is a group of secondary care hospitals facing increasing competition from private hospitals and the rise of technology-enabled healthcare services. Despite a strong reputation for quality care, Be Well struggles to attract and retain patients due to perceived inefficiencies, outdated infrastructure, and a lack of personalized service. The case study highlights the need for Be Well to adapt to changing market dynamics and enhance its service offerings to remain competitive.
The main protagonists are:
- Dr. Sharma: The CEO of Be Well Hospitals, who is committed to improving patient experience and service quality.
- Ms. Kumar: The Head of Operations, who is tasked with implementing changes to improve efficiency and patient satisfaction.
- Mr. Singh: The Head of IT, who is responsible for leveraging technology to enhance patient care and streamline operations.
3. Analysis of the Case Study
This case study presents a perfect scenario for applying the Service-Profit Chain framework to understand the interconnectedness of service quality, employee satisfaction, and profitability. Be Well's current challenges can be attributed to a breakdown in this chain:
- Internal Service Quality: Employees are not adequately equipped with the resources and training to deliver exceptional service. This leads to low employee satisfaction and high staff turnover.
- Employee Satisfaction: Low morale and frustration among staff negatively impact external service quality, leading to dissatisfied patients.
- Customer Loyalty: Dissatisfied patients are less likely to recommend Be Well Hospitals, resulting in decreased market share and reduced profitability.
Furthermore, Be Well needs to address the following:
- Competitive Landscape: The rise of private hospitals with superior infrastructure and technology, along with the emergence of telemedicine and other digital healthcare solutions, poses a significant threat to Be Well's market position.
- Customer Expectations: Patients are increasingly demanding personalized care, convenient access to information, and seamless digital experiences. Be Well's current approach does not meet these evolving expectations.
- Operational Inefficiencies: Outdated infrastructure, manual processes, and a lack of data-driven decision making hinder Be Well's ability to deliver efficient and cost-effective care.
4. Recommendations
A. Service Innovation and Differentiation:
- Develop a comprehensive service portfolio: Offer a range of services tailored to specific patient needs, including specialized clinics, wellness programs, and digital health solutions.
- Embrace technology-enabled services: Invest in telemedicine, remote patient monitoring, and digital appointment scheduling to enhance accessibility and convenience.
- Implement service blueprinting: Map out the patient journey to identify pain points and opportunities for improvement. This will enable Be Well to design a seamless and personalized service experience.
- Focus on service innovation: Develop innovative service offerings that address unmet patient needs, such as personalized care plans, virtual support groups, and proactive health management programs.
B. Customer Experience Management:
- Implement a robust customer relationship management (CRM) system: Capture patient data and preferences to personalize communication and service delivery.
- Develop a customer loyalty program: Reward loyal patients with exclusive benefits and personalized offers to increase retention.
- Establish a strong service recovery process: Implement clear protocols for handling service failures and resolving patient complaints effectively.
- Empower frontline staff: Provide employees with the necessary training and resources to handle customer inquiries, resolve issues, and go the extra mile to exceed patient expectations.
C. Operational Excellence:
- Optimize operational processes: Implement lean management principles to streamline workflows, reduce waste, and improve efficiency.
- Invest in infrastructure upgrades: Modernize equipment, upgrade IT systems, and create a more patient-friendly environment.
- Leverage data analytics: Collect and analyze patient data to identify trends, improve decision making, and optimize resource allocation.
- Implement activity-based costing: Track the cost of providing different services to optimize pricing and resource allocation.
D. Organizational Culture and Change Management:
- Foster a culture of service excellence: Communicate the importance of patient-centricity and empower employees to take ownership of service delivery.
- Implement a comprehensive employee training program: Equip employees with the skills and knowledge necessary to deliver exceptional service.
- Develop a robust performance management system: Track employee performance, provide feedback, and recognize outstanding contributions to encourage continuous improvement.
- Promote diversity and inclusion: Create a welcoming and inclusive environment for all employees, regardless of background or experience.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: Be Well's mission is to provide high-quality healthcare services. These recommendations align with this mission by enhancing service quality, improving patient experience, and increasing operational efficiency.
- External customers and internal clients: The recommendations address the needs of both external customers (patients) and internal clients (employees). By improving service quality and employee satisfaction, Be Well can create a win-win situation for all stakeholders.
- Competitors: The recommendations are designed to help Be Well differentiate itself from competitors by offering innovative services, personalized experiences, and a focus on operational excellence.
- Attractiveness ' quantitative measures: Implementing these recommendations will likely lead to increased patient satisfaction, improved employee retention, and enhanced profitability. While quantifying these benefits requires further research and analysis, the potential for positive impact is significant.
6. Conclusion
By embracing service innovation, customer experience management, and operational excellence, Be Well Hospitals can transform its service offerings and solidify its position as a leader in secondary healthcare. This strategy will require a commitment to ongoing improvement, a focus on employee empowerment, and a willingness to adapt to evolving patient needs and market dynamics.
7. Discussion
Other Alternatives:
- Mergers and acquisitions: Be Well could consider acquiring smaller hospitals or clinics to expand its service portfolio and geographic reach.
- Outsourcing non-core functions: Be Well could outsource certain administrative or logistical tasks to focus on core clinical services.
- Partnerships with technology companies: Be Well could collaborate with technology companies to develop and implement innovative healthcare solutions.
Risks and Key Assumptions:
- Implementation challenges: Implementing these recommendations will require significant investment, organizational change, and ongoing effort.
- Technological advancements: The healthcare landscape is rapidly evolving. Be Well must stay abreast of technological advancements and adapt its service offerings accordingly.
- Patient acceptance: Patients may be resistant to new technologies or service models. Be Well must effectively communicate the benefits of these changes to encourage adoption.
Options Grid:
| Option | Benefits | Risks | Cost | Implementation Time |
|---|---|---|---|---|
| Service Innovation | Increased patient satisfaction, enhanced market position | High investment, potential for resistance | High | Long-term |
| Customer Experience Management | Improved patient loyalty, increased revenue | High investment, complex implementation | Medium | Medium-term |
| Operational Excellence | Increased efficiency, reduced costs | High investment, potential for disruption | Medium | Medium-term |
| Mergers and Acquisitions | Rapid market expansion, access to new resources | Integration challenges, potential for cultural clashes | High | Short-term |
| Outsourcing | Reduced costs, focus on core competencies | Loss of control, potential for quality issues | Medium | Short-term |
| Partnerships | Access to technology and expertise | Dependence on partners, potential for conflict | Medium | Medium-term |
8. Next Steps
- Develop a detailed implementation plan: Outline specific actions, timelines, and resource allocation for each recommendation.
- Establish a dedicated project team: Assign responsibility for overseeing the implementation of the strategy.
- Communicate the vision and strategy: Clearly communicate the rationale for the changes to all stakeholders, including employees, patients, and the board of directors.
- Monitor progress and adjust as needed: Regularly track progress towards achieving the desired outcomes and make necessary adjustments to the strategy.
By taking these steps, Be Well Hospitals can transform itself into a leading provider of secondary healthcare services, delivering exceptional patient experiences and achieving sustainable growth in the competitive healthcare landscape.
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Case Description
Be Well Hospitals - a multi-specialty secondary healthcare chain of hospitals is set up in the suburbs, industrial towns and district headquarters of the South Indian state of Tamil Nadu. The hospital chain co-founded by Dr. C.J.Vetrievel in 2011, fulfills the need of quality healthcare services in secondary healthcare market segment. They provide access to high-quality primary and secondary healthcare services at affordable price to the semi-urban and rural population through their chain of multi-specialty hospitals. In the four and half years, since its founding, Be Well has set up eight hospitals with a combined capacity of more than 280 beds and has treated close to 500,000 patients. The case describes Be Well's extensive programs to achieve service excellence by building a high-quality healthcare delivery system using standard operating procedures (SOPs) in both clinical and non-clinical operations. It provides detailed information on the genesis of the service excellence initiative, the data collection system to understand key operating parameters, converting operating goals into procedures, and the implementation challenges across multiple locations of a multi-specialty tertiary care hospital. The case deals with a leadership challenge of extending the system of controls in both clinical and non-clinical operations while trying to balance it with the need for motivation among both internal employees and contracting doctors. A complicating factor is the accreditation process that the hospital chain is trying to pass which would extend its market reach and strengthen the brand. The top management of the chain needs to decide on the institutionalization of standard operating procedures and metrics, tying them to incentives and compensation systems ,and adding a Health Management Information System to achieve its service excellence goals. And, it wants to ensure that operational excellence does not compromise the patient experience.
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