Superior Customer Experience Correlates to 50% Higher Hospital Margins

Accenture recently published an analysis on customer satisfaction from the Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS). Here are some key findings from the report:

·         Hospitals that deliver "superior" customer experience have 50% higher net margins than average hospitals.

·         The margin increase at urban hospitals is roughly eight times that of rural hospitals.

·         Academic hospitals had a 2.1% margin increase per 10% increase in HCAHPS score in 2013.

·         Margin increase correlated to a 10% consumer experience improvement grew 70% from 2008-2013.

·         Among the top 20% of patient experience performers, revenues grew 10.9% and costs grew 7.8% in 2013.

·         For profit hospitals had a 3.3% margin increase per 10% increase in HCAHPS score in 2013.

Source: Accenture, May 11, 2016