A potentially valuable insight from the analysis, and already well understood in other commercial sectors, is that a decline in patient experience ratings can be a predictor of declining financial performance. For senior leaders in healthcare, this underlines the value of patient experience ratings as a financial performance indicator as well as a quality and safety measure.
Cemplicity published its latest analysis into the correlation between Patient Experience ratings and operating margins this week.
Entitled “Do Happy Patients really mean Healthy Profit Margins?” they used recently published data from almost 3,000 USA hospitals to determine that yes, there is a positive and statistically significant correlation between patient experience ratings and operating margins.
Another useful insight from the analysis is that once a hospital has over 80% of their patients giving an excellent rating for their experience, further improvements in ratings are not significantly correlated with margin improvement. This insight can help with the allocation of resources, encouraging providers to focus on services and facilities getting ratings below 80% or patient cohorts consistently rating their experiences below this level.
To read the full report: Do Happy Patients really mean Healthy Profit Margins?
Research Methodology
Cemplicity used data from the 2022/2023 reporting period from 2,946 non-government owned hospitals (for profit and not for profit). Patient experience data was downloaded from the Centers for Medicare and Medicaid Services website and hospital performance data was obtained from RAND (hospitaldatasets.org).
About Cemplicity
Cemplicity is a Patient-Reported Measures company, who embed their digital platform into hospitals to capture live feedback from patients from pre-admission through to recovery at home. Their platform and service supports private hospitals towards transformational service excellence and brand leadership.
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PR Contact:
Michael Hayward
communications@cemplicity.com