Patient Satisfaction: A New Bottom Line for Healthcare

PATIENT SATISFACTION A New Bottom Line for Healthcare Insights for Healthcare Managers, Leaders

Contents

01

Introduction

02

How do hospitals measure up?

03

Where do patients get their information?

04

Using social media to improve patient satisfaction

06

Meet an expert: John W. Huppertz, PhD

07

Clarkson’s MBA in Healthcare Management Program

Introduction Patient satisfaction has long been important to hospitals, but these days it matters more than ever. Hospitals that fare poorly in federal patient satisfaction surveys now face a direct hit to the bottom line: cuts in Medicare reimbursement for their services.

Less official sources of patient opinions— personal and hospital Facebook pages and other social media sites—also present challenges.

Studies show that online comments play a role in decisions on where to turn for care, so negative viewpoints can impact hospital reputations and patient volumes.

However, online feedback also can give hospitals an invaluable “heads-up,” alerting them to patient concerns almost as soon as they arise.

Hospitals that seize the opportunity can take steps to improve patient satisfaction, preserve their reputation, and maximize Medicare reimbursements.

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How do hospitals measure up?

Consumers have been able to compare their local hospitals online, at Hospital Compare, since 2008. Data on patient satisfaction, collected via the national Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS) Survey, has been included in Hospital Compare since 2008—but did not affect hospital funding until fiscal year (FY) 2013. That’s when Medicare began rewarding hospitals that met certain quality measures—and penalizing those that fell short—as part of its valuebased purchasing program.

Here’s how it works:

2%

Medicare withholds a small percentage of the regular fees it pays to participating hospitals.

For FY 2016, Medicare is withholding 1.75 percent. Starting in FY 2017, the withholding will increase to 2 percent.

Hospitals are assigned an overall rating—and up to five stars—based on how well they meet quality measures for safety, clinical processes, efficiency, and patient experience and satisfaction.

$

The overall rating determines how much of the withheld funds will be returned to each hospital.

Lower-rated hospitals will lose money. Strong performers and those who receive high marks for improvement will be rewarded with a larger share.

25

percent

Patient experience and satisfaction accounts for 25 percent of that overall rating.

The bottom line: MORE THAN

HALF

If patients are dissatisfied, hospitals will literally pay the price in reduced Medicare payments. No wonder more than half (54 percent) of healthcare leaders surveyed in 2013 cited patient experience and satisfaction as one of their organization’s top three priorities for the next three years.1 Clarkson University | 02

More than half (54 percent) of healthcare leaders cited patient experience and satisfaction as one of their organization’s top three priorities. – 2013 Industry Survey, HealthLeaders Media

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Where do patients get their information?

HCAHPS surveys provide the patient satisfaction data that affects Medicare reimbursement. The surveys are given to a random sample of adult inpatients nationwide and cover topics such as communication with doctors and nurses, responsiveness of hospital staff, pain management, cleanliness and quietness, discharge information, and transition of care.

Survey results are posted on Hospital Compare to help patients make informed decisions when choosing a hospital. Yet studies show that many patients give as much or more weight to informal sources such as social media and word-of-mouth recommendations.

In their 2010 report, “Consumers’ use of HCAHPS ratings and wordof-mouth in hospital choice,”2 Clarkson University Business School professors John W. Huppertz, PhD and Jay P. Carlson, PhD note that “Even when quality ratings factor into consumers’ hospital choice decisions, people will ask acquaintances for advice …” And, in a 2012 survey of more than 1,000 consumers, 41 percent said social media would affect their choice of a specific doctor, hospital, or medical facility.3

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Using social media to improve patient satisfaction With more than 94 percent of U.S. hospitals on Facebook,4 the social media platform has become an increasingly popular way to engage patients. Many hospitals continually monitor their Facebook pages and are quick to respond to comments on a patient-by-patient basis. Recent research suggests that hospitals should also take the larger view and use individual comments to discern broader public opinion.

For their latest research, Dr. Huppertz and colleagues mined star ratings and comments from hospital Facebook pages to investigate potential similarities between Facebook reviews and HCAPHS ratings. “The findings suggest that what patients say on Facebook predicts a hospital’s global measures of patient experience,” Dr. Huppertz says.

He recommends that hospitals tap into the wealth of commentary on social media and take advantage of what could be an early-warning system. “Comments from patients and family members can alert administrators to quality problems well before they show up in HCAHPS survey results,” Dr. Huppertz says. Equally important, comments on social media can help staff understand and address the problems patients have experienced. That can have a positive impact on quality and patient satisfaction.

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Comments from patients and family members can alert administrators to quality problems well before they show up in HCAHPS survey results. — John W. Huppertz, PhD, specialist in healthcare marketing and management

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Meet an expert: John W. Huppertz, PhD Dr. Huppertz is chair of Clarkson University’s MBA in Healthcare Management Program and an associate professor of healthcare management.

His academic interests are in healthcare marketing, strategic management of healthcare organizations, leadership, and strategic planning. Dr. Huppertz has written and co-written book chapters and journal articles about marketing and healthcare and has delivered numerous invited and refereed presentations at professional gatherings. He also is a member and past chapter president of the American Marketing Association.

Before his academic career, Dr. Huppertz was managing partner of a $135-million marketing communications agency. A graduate of Xavier University, Dr. Huppertz earned a master’s and doctorate, both in social psychology, from Syracuse University.

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Clarkson’s MBA in Healthcare Management Clarkson University’s MBA in Healthcare Management Program prepares graduates for careers as administrators and analysts in healthcare, and in healthcare-related roles in government and the private-sector. Students can pursue the degree online or on-site.

The curriculum is designed to help students understand the complexities of the healthcare system and to manage health and health-related facilities more effectively.

The program is dual-accredited—by the Association to Advance Collegiate Schools of Business (AACSB) and the Commission on Accreditation of Healthcare Management Education (CAHME).

To request more information, click here.

1

2013 Industry Survey, HealthLeaders Media

2

“Consumers’ use of HCAHPS ratings and word-of-mouth in hospital choice,” Health Services Research, December 2010.

3

“Social media ‘likes’ healthcare: From marketing to social business,” Health Research Institute at PWC U.S., April 2012

“Use of social media across U.S. hospitals: Descriptive analysis of adoption and utilization,” Journal of Medical Internet Research, November 2014 4

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