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Free Strategy case of the day: Michigan Hospitals offer amenities

  • 1.  Free Strategy case of the day: Michigan Hospitals offer amenities

    Posted 01-02-2005 06:47
    Hall, Sheri. 2005. Hospitals offer posh amenities. Detroit News. (January
    2). Accessible at:
    http://www.detnews.com/2005/health/0501/02/D01-47331.htm
    If the above link is broken try:
    http://tinyurl.com/5re9q

    EXCERPT:
    After giving birth at 6:30 p.m. on a recent Monday, Colleen Galla was
    hungry.

    But since Galla and her newborn daughter still hadn't received their room at
    St. Joseph Mercy Oakland hospital, she didn't expect to get dinner. Galla
    was surprised when a nurse brought her a full menu that included entrees
    such as pan blackened red fish, an oriental chicken fruit salad plate and
    garden vegetable burgers. Forty minutes later, she was dining on penne
    pasta.

    "I hadn't eaten all day, so that was really good," Galla said.

    It's not quite the service you'd find at a Ritz-Carlton, but it's close --
    and that's the goal. Under pressure to improve margins and boost patient
    volumes, hospitals throughout Metro Detroit are offering hotel-like upscale
    amenities such as Internet access, video games and call-ahead valet parking.


    Even the term patient is being replaced by "guest," "customer" or "client."

    Hospital executives say the key to thriving in an increasingly competitive
    market lies not only in the medical treatment, but also in how they treat
    patients.

    "We already have a couple of strikes against us when people walk in the door
    because obviously nobody is signing up to come here," said Jack Weiner,
    chief executive of St. Joseph Mercy Oakland Hospital. "We take away people's
    ability to control their lives. We take away their clothes and then people
    they don't know are poking and prodding at them. So it's a matter of
    treating people like human beings and allowing them to maintain their
    lifestyle as much as possible."

    Studies show patients who are calm, relaxed and happy recover more quickly,
    Weiner added.

    Customer satisfaction with hospitals increased 4.1 percent in the past year
    to the industry's highest rating ever, according to an annual study by the
    University of Michigan's Ross School of Business that surveys 800,000
    consumers.

    Besides hotel-like amenities, hospitals are making a bigger effort to
    deliver services when patients need them -- not hours or days later.

    The Detroit Medical Center and Oakwood Hospital guarantee to take care of
    emergency room patients in 30 minutes or less. And Henry Ford Health System
    and Oakwood offer same-day and next-day doctors' appointments for people who
    feel ill.

    Oakwood Healthcare in Dearborn has taken the concept one step further.

    It hired consultants from Ritz-Carlton Hotels to help improve customer
    service throughout its hospitals.

    Since then, Oakwood has adopted a technique used by the posh hotel chain
    that the hospital calls "the huddle." It operates like this: workers in
    every department -- from the maintenance crew to the head nurse -- get
    together for 10 minutes at the start of every shift to hear announcements,
    talk about a weekly customer service standard and share personal news.

    The theory is that if you take good care of your workers, they'll in turn
    take good care of customers or patients, said Ken Trester, senior vice
    president of marketing at Oakwood, who helped launch the initiative.

    "Guest satisfaction is the end product, but you can't have that if your
    employees aren't happy," he said. "We found that traditional customer
    service training doesn't work well, because when workers got on the job they
    became overwhelmed with their duties and lost focus. By talking about
    customer service every day, we're making sure that doesn't happen."

    So far, it's working. Surveys show that Oakwood patients are more satisfied
    with the service they're getting.

    "You work better when you feel you're working as a team and you know more
    about your co-workers than just their names," said Carrie Cote, an assistant
    nurse manager on an oncology floor who runs the meetings in her department.

    Part of improving guest satisfaction is providing room service, which is now
    offered at about a dozen hospitals in Metro Detroit. Previously, cooks made
    meals using assembly-line techniques and delivered them at scheduled times
    -- whether the patient was ready or not.

    "Half of the people were eating the food hot and for the others, the trays
    just sat there," Weiner said. "Then when the patient was finally ready to
    eat, the hot beverage was cold, the cold beverage was warm and the Jell-O
    was melting. We found we were throwing away a lot of food, and the patients
    weren't happy."

    Delivering freshly made meals is more expensive, and servers do a lot more
    walking because they have to return to the same floor many times a day. And
    the hospital had to hire workers to take orders via the phone and make sure
    that patients on restricted diets weren't ordering foods they weren't
    allowed to eat.

    But the hospital is also saving money because it's not throwing away as much
    food, Weiner said.

    Jerome O'Conner, a patient in St. Joseph Mercy Oakland last week,
    appreciated the service. During several days in the hospital with the flu,
    he had ordered an oriental chicken salad fruit plate, macaroni and cheese,
    meatloaf and the St. Joe's Juicy Burger.

    "Most of it doesn't taste like sawdust," he said, "which is a vast
    improvement."

    -----------------------------------------

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