Medical makeover: 10 steps to a new kind of healthcare

Governments the world over are pouring money into healthcare, with many already spending more than 10% of their GDP on its delivery. In the USA, it’s moving towards 20% and the demand will only grow, as people live longer and expectations of the quality of care increase.

Healthcare is not just one of the world’s largest industries, it’s also one of the biggest employers and a sector that touches everyone at some point in their lives. So the pressure to squeeze maximum value from minimal resources - whilst improving patient outcomes - is tremendous. There is a universal need to unlock value and enable opportunity within the healthcare arena. Before we look at how this can be done, let’s look at some of the reasons this is such a major and pressing challenge:

1. Longer lives, more healthcare

With new drugs and technology giving critically ill people longer to live, the average life expectancy is nearly double what it was 150 years ago. This means the healthcare industry is having to provide care for people for many more years.

2. Higher expectations

The internet has made people more aware of what technology and treatment is available - putting greater pressure on health systems to provide upto-the-minute products.

3. Unsustainable spending

Given current trends and the way money is being spent in the sector, healthcare schemes will need 35% more funding in real terms by 2050. That would mean some economies having to deliver growth at somewhere between 3.5 and 6% of their GDP, which is clearly unrealistic. History tells us that straightforward investment isn’t enough, with too many examples of increased expenditure failing to deliver better outcomes.

What is needed is a new model for healthcare that makes better use of all the available technology, talent and space to create entirely new, more efficient ways of working. Only then, will the money being spent make a difference.

Ten steps to efficient healthcare

From our research, we’ve come up with ten steps for healthcare organisations to follow to become more efficient. We realise that some of these are not easy to introduce, but all are necessary if healthcare systems are to change.

Step one: streamline clinical care pathways

This means thinking about which services are being offered, then making sure patients are moving through those services quickly and efficiently. If patients are getting caughtup in lengthy processes, or going through the same process in each department they visit, then something needs to change. Simulation models can help identify ways of streamlining pathways and I.T systems, and can help build up a strong business case for change.

Step two: become more patient-focused

Just like retailers, healthcare organisations need to start thinking more about what patients need and want, so they can be sure they’re spending their money in the right places. For example, hospitals in USA, Germany and Sweden, have responded to growing expectations from patients with systems like e-booking. They’ve also redesigned patient and staff areas, and made sure working environments are low-risk.

Step three: good governance

Health is a high-risk industry. Poorly designed care pathways, unproven clinical techniques, lack of training and supervision, poor FM performance, negligence and bad sanitation, cost tens of thousands of lives every year.
All healthcare providers and commissioners need to understand how they measure up to national and international benchmarks. For example, our research shows that by adopting commercial management techniques the NHS could raise the efficiency of its properties by 7% plus.

Step four: operational performance

Every healthcare provider needs to squeeze the most out of their assets to deliver against the efficiency agenda, but let’s not lose sight of the carbon footprint too. Many health organisations could unlock millions by making better use of their built assets, leading to dramatic operating cost reductions over the long term.

For example, the Karolinksa Clinic in Sweden has a new sustainable building that they can easily adjust over the next 30 to 40 years to cope with changes in healthcare. With standardisation of rooms, extra service risers and deep ceiling voids, there’s plenty of ready space to change and install new equipment as it comes onto the market. Building this flexibility into the fabric of the place will save millions of pounds in the future.

The other steps to consider are;

1. I.T and equipment strategies
2. Service and estate strategy review
3. Review FM services and supply chain
4. Change of land and estate options
5. Multi-use of space
6. Sustainability implementation.

Download full publication (PDF)