New Hospital Model
A New Business Model is Needed for Success

The old American hospital business model has been in difficulty for some time, some say it's dead. Clearly the nation is being bankrupted by its approach to healthcare, and increasingly its quality is being called into question. A number of hospital leaders have been rethinking their business model, and getting substantially better results by changing how the organization is managed.

• Market demands are clear on at least two points: get rid of the quality management problem that causes an estimated 100,000 deaths annually, and create an affordable product. A business model can only be successful when it approximates market requirements, so the industry must change.

• The New American Hospital (NAH) model that has emerged as a better formulation and proven competitively dominant seeks to implement Operational Excellence. The NAH model seeks 4 pre-eminent goals: High Satisfaction, High Quality, Low Cost, and Best People. The New American Hospital model is detailed in the book - Creating the New American Hospital - and in these articles:

  • The New American Hospital
  • Birth of The New American Hospital
  • Interview on the New Management

• To implement it, effective executives first focus on leadership team development and culture renewal, then enlist involvement by the hospital's staff in creating a massive wave of change and work process improvements. This "turning of the tide" dramatically improves system quality and customer satisfaction. Financial performance predictably grows rapidly as does competitive dominance in the region. The model is reliable in producing these outcomes.

• The illustration above is available as a visual pdf. The New American Hospital closely parallels the profile of successful benchmark organizations found in other industries.
• And the New Amercan Hospital Checklist is the master outline that coordinates all the pieces. Think of it as the world's longest To Do list! Available in Member Downloads.