Opportunities for Hospitals to Create New Revenue Streams

Traditionally, hospitals have always relied on patient care and surgery expense for their revenue. However, using various technological innovations, they can now explore other potential avenues for generating revenue. With the increasing popularity of advancements such as health monitoring devices and telemedicine, an array of opportunities has emerged for medical facilities. Hospitals have the capability to offer complete digital care packages to customers on a monthly subscription, thus introducing a new revenue stream.

Technology has created new opportunities across sectors, including medical care facilities such as hospitals and clinics. So far, these health facilities have mainly depended on patient addition and healthcare fees for their revenue. However, with the emergence of novel medical solutions, hospitals and clinics can generate new sources of revenue.

Chronic diseases, such as diabetes, obesity, or kidney issues, can be better managed if there is constant monitoring and medical consultation. Yet, as the patient cannot visit a healthcare facility every day, they have a schedule of monthly/weekly checks. A lack of regular monitoring can be detrimental to health and trigger complications later on.

There is a solution to this. Healthcare facilities can now provide patients a continuum of care through customized health packages that would employ wearable devices and telehealth services.

The patient’s health and vitals are continuously tracked via a wearable and this data is shared with the physician regularly. Based on the information received, the physician can suggest any change in medicine, diet, or exercise regime, if required. Consultation can be provided through telehealth; hence, the patient is not expected to travel and be physically present for the consultation.

Hospitals can charge patients for these customized digital packages, thereby creating a potentially new revenue stream. This offers many advantages such as:

• Better care – Patients can get better treatment through regular health monitoring, chances of any sudden medical emergencies are reduced, and there is a high probability of checking the progression of disease.
• Cost-effective – This model can prove cost-effective for patients. Since they are under constant monitoring, they get constant medical attention at a fairly low cost. Furthermore, they do not need to undergo expensive tests and checks before every consultation.
• Value-based care – The value-based care model is evolving and would soon become a global healthcare model. Since in this model the medical fee is based on the health outcome, hospitals that are already offering care packages would stand to gain.
• Fewer readmissions – Readmission in hospitals is costly for both patients and hospitals. Regular readmission also reflects poorly on the hospital’s reputation. Through care packages and effective monitoring, the need for readmission is greatly minimized.
• Steady monetization – Monitoring technology can help hospitals generate revenue for associated departments, e.g., pathology, and also monetize departments such as biomedical.
• Data for research – Data collected through constant health tracking can be crucial for research purposes. This data can be used to understand disease progression and come up with innovative medicines or treatment courses.
• Revenue from data – Data can become a source of revenue by making it available to stakeholders such as insurance players, research organizations, pharma companies, and medical device firms.

Nowadays, patients want to be involved in their health decisions and be up to date on their treatment courses. Digital care packages can provide the required efficiency and facilitate involvement. Through these packages, the patient gets regular updates on their health status and lifestyle changes that are needed and be aware of medicines they are prescribed. The patient also has easy access to their caregiver and gets undivided attention and care.

Healthcare is an essential requirement that would always be in demand. However, the need to bring transparency, efficiency, and accountability to the entire process has increased globally, and digital care packages could be a step in that direction.