I recently had an exchange, or debate, with another healthcare professional regarding the retail initiative that I am pursuing. It seemed that there was great concern with the idea of "niceties" taking precedence over the needed money for patient care and/or state of the art medical equipment.
It was her position that she would rather have a stark environment if it meant that she had the best doctors and equipment available to provide the best care at that particular facility. The fact that there may be a nice cafe, salon, gift shop or other food offering available for the staff or visitors was not a real need for her care, or anyone else.
My contention was the real world facts that prove those that are not necessarily "in the bed" at our area hospitals need to have work environments (staff) or amenities (visitors) in order to provide a positive experience which then transitions into the contact time with the patient / loved one. I pointed to her own office work environment as an example. I asked her if she had a very uncomfortable chair, grey walls without any pictures, no windows, cement floors......you get the image. Likewise, our hospitals should have venues that provide for that respite and recharge for the benefit of our morale and energy that we carry into the rooms throughout the campus.
In addition, these are areas that provide, if built and managed correctly, for greater gifting and benevolence to those that need it. This is not retail just for the sake of having retail. This is retail that has definite purpose and mission behind it. Anything else that is serving only to offer a good coffee, or worse yet, fill the pockets of an outside entity is not to the full benefit of the patient care.
Wednesday, October 14, 2009
Thursday, September 24, 2009
Are we there yet??
Now that my kids are all but flown from the nest I find myself missing those long drives with the constant asking "are we there yet?" Just for laughs my wife will ask me that question whenever we are laying out our long term plans for life after our youngest enters college next year. Then the front door flies open and I hear the voice of my 3 year old grandson Carter yelling "where's pappa?" and I am reminded of the joy of being part of something very special.
Likewise I feel very fortunate to be part of the very special growth in the placement of retail venues within healthcare. Although it is a slow process to communicate the need for a retail entrepreneur mindset for the management of a facility dedicated to the healing and care of the sick or injured, it is very rewarding to see their willingness to be open to the idea.
I have had an extremely rewarding summer of sharing our mission with many healthcare executives that are always willing to turn over any rock in search of ways to positively impact patient care, even if it is in the form of a coffee shop. They realize that what we carry a message that is deeply rooted in providing appropriate services to enhance staff retention and visitor satisfaction, but equally important to retain the income for furthering the overall system mission.
As my earlier entries have indicated, we are entering my most desired seasons of fall and winter. I have many friends, and now the addition of another grandson (Brady), to remind me that I am coming closer to my own personal fall and winter seasons. That stated, I remind them that I feel the same energy and stamina I felt when I was chasing my own kids around on the beach after arriving from a long drive to vacation. Likewise, I feel that same level of passion and desire to provide strong guidance to our clients in the addition of retail to their lobbies and atrium's.
I become very agitated as I witness other "consultants" guiding hospitals to implement franchise owned offerings, only to the benefit of the franchise owners. For that reason I am reminded of the other phrase heard in many a family packed vehicle headed down the highway........
"Don't make me come back there!"
Likewise I feel very fortunate to be part of the very special growth in the placement of retail venues within healthcare. Although it is a slow process to communicate the need for a retail entrepreneur mindset for the management of a facility dedicated to the healing and care of the sick or injured, it is very rewarding to see their willingness to be open to the idea.
I have had an extremely rewarding summer of sharing our mission with many healthcare executives that are always willing to turn over any rock in search of ways to positively impact patient care, even if it is in the form of a coffee shop. They realize that what we carry a message that is deeply rooted in providing appropriate services to enhance staff retention and visitor satisfaction, but equally important to retain the income for furthering the overall system mission.
As my earlier entries have indicated, we are entering my most desired seasons of fall and winter. I have many friends, and now the addition of another grandson (Brady), to remind me that I am coming closer to my own personal fall and winter seasons. That stated, I remind them that I feel the same energy and stamina I felt when I was chasing my own kids around on the beach after arriving from a long drive to vacation. Likewise, I feel that same level of passion and desire to provide strong guidance to our clients in the addition of retail to their lobbies and atrium's.
I become very agitated as I witness other "consultants" guiding hospitals to implement franchise owned offerings, only to the benefit of the franchise owners. For that reason I am reminded of the other phrase heard in many a family packed vehicle headed down the highway........
"Don't make me come back there!"
Sunday, June 7, 2009
Hospitals in Michigan look to shops for revenue
BY PATRICIA ANSTETT • FREE PRESS MEDICAL WRITER
Don't be surprised to visit a hospital and be able to walk out with a mattress or a Honey Baked Ham. Borrowing a page from airports and shopping, hospital systems are expanding, renovating and taking back their retail and food operations from outside vendors and hospital auxiliaries, or working with volunteers to introduce retail concepts. Amid lean times, they are finding that
there's money to be made from selling plush bathrobes, jewelry, take-out ethnic
foods and birthday cakes.
Henry Ford West Bloomfield, a $350-million hospital that epitomizes the new trend, doesn't open to patients until Sunday, but already is seeing brisk sales to visitors and people with outpatient appointments for hypoallergenic lipsticks, cancer books, plush bathrobes and Mrs. Meyers cleaning products, said retail manager Meghan Rossi. The hospital's Sleep Well store sells hypoallergenic and natural fiber mattresses starting at $3,199 and lavender and aloe-scented pillows at $79 to $109.
St. Joseph Mercy, near Ann Arbor, is midway through an expansion of its food and gift offerings. Last year, the hospital moved a food kiosk that sells specialty coffees, sandwiches and soups to a prime front-door location, a move and expansion that brought $100,000 in revenue from a single location, said Pam Misener, system integration leader at St. Joseph Mercy.
Brighton hospital retail consultant John Johnson is helping with the transformation. His company, Total Management Services Inc., is working on retail overhauls for several of the hospitals in the St. Joseph Mercy Health System, including St. John Hospital Detroit and Borgess Medical Center, Kalamazoo, part of the Ascension Health system of St. Louis.
"I can walk into 25 hospitals and identify millions of dollars in retail opportunity," said Johnson, whose firm is advising several Ascension Health and Trinity Health system hospitals in metro Detroit. He fumes whenever he sees a floral arrangement being delivered to a hospital, seeing it as another lost opportunity. "This is revenue that could help hospitals fighting to break even do that," he said, referring to hard times facing the hospital industry these days. He tells hospitals to expand store space and stock shelves with "price-point appropriate items" that will sell.
Too many shops are filled with items there just because someone's relative is associated with the product, or they lack appeal to a wide age-range, he said. He walks through St. Joseph's gift shop and nixes window-hanging decals, china statutes and luggage, all on sale. He wants more space for flowers, cards and small gifts.
The new services are as much for employees as they are for patients and their visitors, say Misener and Maureen Husek, Beaumont's retail manager. "A large portion of your customers are your employees," Husek said. Last Easter, Thanksgiving and Christmas, Beaumont sold Honey Baked Hams and gave a portion of the revenue to the company but kept the profits from side dishes its kitchen prepared for sale. The cafeteria also sells ethnic take-out foods and pastries that can be preordered or picked up at the last minute, Husek said. "We sell items people can take home; milk, bread, eggs, butter," Misener said. The hospital also will decorate a birthday cake with a special inscription. The idea came from the staff. "It kind of feels nice that we're actually meeting the needs of people," Misener said.
Johnson tells hospitals to expand hours and space for retail sales. He hopes to add 30 jobs at St. Joseph's by expanding food kiosk hours and offerings. He tells hospitals not to staff retail operations with volunteers if possible. Many hospitals already are having trouble keeping shops open and close most weekends or even weekday hours, because they don't have enough volunteers, as more work to earn money after they retire.
He asked: "What coffee shop do you know that only has one person working for three
hours and she has to put up a sign saying she'll be back in awhile?"
BY PATRICIA ANSTETT • FREE PRESS MEDICAL WRITER
Don't be surprised to visit a hospital and be able to walk out with a mattress or a Honey Baked Ham. Borrowing a page from airports and shopping, hospital systems are expanding, renovating and taking back their retail and food operations from outside vendors and hospital auxiliaries, or working with volunteers to introduce retail concepts. Amid lean times, they are finding that
there's money to be made from selling plush bathrobes, jewelry, take-out ethnic
foods and birthday cakes.
Henry Ford West Bloomfield, a $350-million hospital that epitomizes the new trend, doesn't open to patients until Sunday, but already is seeing brisk sales to visitors and people with outpatient appointments for hypoallergenic lipsticks, cancer books, plush bathrobes and Mrs. Meyers cleaning products, said retail manager Meghan Rossi. The hospital's Sleep Well store sells hypoallergenic and natural fiber mattresses starting at $3,199 and lavender and aloe-scented pillows at $79 to $109.
St. Joseph Mercy, near Ann Arbor, is midway through an expansion of its food and gift offerings. Last year, the hospital moved a food kiosk that sells specialty coffees, sandwiches and soups to a prime front-door location, a move and expansion that brought $100,000 in revenue from a single location, said Pam Misener, system integration leader at St. Joseph Mercy.
Brighton hospital retail consultant John Johnson is helping with the transformation. His company, Total Management Services Inc., is working on retail overhauls for several of the hospitals in the St. Joseph Mercy Health System, including St. John Hospital Detroit and Borgess Medical Center, Kalamazoo, part of the Ascension Health system of St. Louis.
"I can walk into 25 hospitals and identify millions of dollars in retail opportunity," said Johnson, whose firm is advising several Ascension Health and Trinity Health system hospitals in metro Detroit. He fumes whenever he sees a floral arrangement being delivered to a hospital, seeing it as another lost opportunity. "This is revenue that could help hospitals fighting to break even do that," he said, referring to hard times facing the hospital industry these days. He tells hospitals to expand store space and stock shelves with "price-point appropriate items" that will sell.
Too many shops are filled with items there just because someone's relative is associated with the product, or they lack appeal to a wide age-range, he said. He walks through St. Joseph's gift shop and nixes window-hanging decals, china statutes and luggage, all on sale. He wants more space for flowers, cards and small gifts.
The new services are as much for employees as they are for patients and their visitors, say Misener and Maureen Husek, Beaumont's retail manager. "A large portion of your customers are your employees," Husek said. Last Easter, Thanksgiving and Christmas, Beaumont sold Honey Baked Hams and gave a portion of the revenue to the company but kept the profits from side dishes its kitchen prepared for sale. The cafeteria also sells ethnic take-out foods and pastries that can be preordered or picked up at the last minute, Husek said. "We sell items people can take home; milk, bread, eggs, butter," Misener said. The hospital also will decorate a birthday cake with a special inscription. The idea came from the staff. "It kind of feels nice that we're actually meeting the needs of people," Misener said.
Johnson tells hospitals to expand hours and space for retail sales. He hopes to add 30 jobs at St. Joseph's by expanding food kiosk hours and offerings. He tells hospitals not to staff retail operations with volunteers if possible. Many hospitals already are having trouble keeping shops open and close most weekends or even weekday hours, because they don't have enough volunteers, as more work to earn money after they retire.
He asked: "What coffee shop do you know that only has one person working for three
hours and she has to put up a sign saying she'll be back in awhile?"
Its Heating Up Real Fast
For the record, I am not a Summer person. I do not mean that in a fashion or color sense, I am mainly referencing my lack of appreciation for the HEAT of Summer. Give me a nice cool breeze on a fall day, or for that matter a nice snow fall with the temperature around 30 degrees is pleasant. That said I do love to see the type of heating up that is taking place around the Retail Initiative that many healthcare folks are generating.
There are some that have begun the process of appointing their own "Retail Czars" to handle the potential new revenue cycle. It is equally exciting to see that new hospital floor plans are now including allocations for retail space and staff service areas as part of normal design functions. More of the coffee/cafe programs we promote are now seen as welcomed additions to lobbies and atrium's that had only utilized the sights and sounds of water effects or many unused soft seats. The gathering of the physicians, nurses, executives and volunteers mingling with the visitors and patients is a satisfying vision of community and sharing. Such venues will continue to encourage and promote an improved staff/patient experience throughout the campus.
The approach to the realization of this vision is not a sprint, but a marathon. As is the case with any HOT topic or initiative, there comes a need for thoughtfulness and good planning to maintain and direct its energy to avoid a "snuffing out" of the flame. We have all witnessed great ideas and concepts that had the 100 yard dash approach to their roll out, only to pull a hamstring three quarters of the way into the race. We cannot risk racing to place product or venues just to fill a perceived want. There is a careful Discovery phase that is needed to help identify what the true need and purpose for services are. I wake up every day looking forward to assisting those that desire such careful handling of the valued resources and passionate service for their staff and the patients that enter their doors.
There are some that have begun the process of appointing their own "Retail Czars" to handle the potential new revenue cycle. It is equally exciting to see that new hospital floor plans are now including allocations for retail space and staff service areas as part of normal design functions. More of the coffee/cafe programs we promote are now seen as welcomed additions to lobbies and atrium's that had only utilized the sights and sounds of water effects or many unused soft seats. The gathering of the physicians, nurses, executives and volunteers mingling with the visitors and patients is a satisfying vision of community and sharing. Such venues will continue to encourage and promote an improved staff/patient experience throughout the campus.
The approach to the realization of this vision is not a sprint, but a marathon. As is the case with any HOT topic or initiative, there comes a need for thoughtfulness and good planning to maintain and direct its energy to avoid a "snuffing out" of the flame. We have all witnessed great ideas and concepts that had the 100 yard dash approach to their roll out, only to pull a hamstring three quarters of the way into the race. We cannot risk racing to place product or venues just to fill a perceived want. There is a careful Discovery phase that is needed to help identify what the true need and purpose for services are. I wake up every day looking forward to assisting those that desire such careful handling of the valued resources and passionate service for their staff and the patients that enter their doors.
Thursday, May 7, 2009
Is Your Mission Best Served by...........?
There seems to be a tremendous buzz and energy growing on this whole "retail thing". I am constantly being sent information on ways that companies are "serving" the hospital community by providing guidance and management programs. Although it becomes very attractive for hospital management to relieve themselves of the headaches related to the day to day operations of such added services and offerings, it comes at a great cost to the bottom line. This "bottom line" has more to do with the benevolence opportunities as opposed to the hard line profits mentality.
What best serves the mission of the non profit health care community is that of retention of margins after the real cost of doing business. The model of what many of these outside companies provide is a good one, the only problem is that most of the actual return does not stay with the hospital. Here is an actual paragraph from one such company's web site. Items in red added by me (couldn't resist)
"Company X" has secured agreements with world-class coffee purveyors to fund and operate (both at a high cost of goods) specialty coffee stores in hospitals. In addition "Company X" is securing agreements with other, healthy branded retail food and beverage companies (that need to make their money first) to further enhance our (should be "your") retail service options. Beyond the enhanced hospital image, the high-quality retail offerings will allow "Company X" to leverage its Room Service offering to hospitals, driving additional retail volume (This may be crossing a fine line of pushing retail into the rooms of patients. Providing an e-commerce destination for the patient to utilize at their leisure and convenience is one thing, using a Room Service person to "leverage" sales is creepy to me. The retail is first and foremost for your staff and visitors, who each have their own unique positive impact on patient care and recovery as a result of having what they need on campus). These retail concepts can be implemented with no cash outlay by the Hospital (Which can still be done if the hospital owns it, they just need good representation). "Company X" will invest in all design, build-out, construction, equipment, and installation needed to open the retail store and will operate the store upon opening, leaving nothing (this may refer more accurately to a fair share of the revenue as much as anything else)for the hospital to do but enjoy the high quality food, beverages, and environment! (this has an image in my mind of when I had to distract my young son with a pretty red balloon as the doctor had to give him a painful shot in the arm, or better yet the Wizard of Oz reference of not looking behind the curtain,just watch the show up front.
Regardless of how many want to package the approach, anything short of the hospital retaining complete ownership, control and most of the benefits of such retail spaces, it cannot be deemed a Maximum Return Initiative. That's my feeling and I'm sticking to it.
What best serves the mission of the non profit health care community is that of retention of margins after the real cost of doing business. The model of what many of these outside companies provide is a good one, the only problem is that most of the actual return does not stay with the hospital. Here is an actual paragraph from one such company's web site. Items in red added by me (couldn't resist)
"Company X" has secured agreements with world-class coffee purveyors to fund and operate (both at a high cost of goods) specialty coffee stores in hospitals. In addition "Company X" is securing agreements with other, healthy branded retail food and beverage companies (that need to make their money first) to further enhance our (should be "your") retail service options. Beyond the enhanced hospital image, the high-quality retail offerings will allow "Company X" to leverage its Room Service offering to hospitals, driving additional retail volume (This may be crossing a fine line of pushing retail into the rooms of patients. Providing an e-commerce destination for the patient to utilize at their leisure and convenience is one thing, using a Room Service person to "leverage" sales is creepy to me. The retail is first and foremost for your staff and visitors, who each have their own unique positive impact on patient care and recovery as a result of having what they need on campus). These retail concepts can be implemented with no cash outlay by the Hospital (Which can still be done if the hospital owns it, they just need good representation). "Company X" will invest in all design, build-out, construction, equipment, and installation needed to open the retail store and will operate the store upon opening, leaving nothing (this may refer more accurately to a fair share of the revenue as much as anything else)for the hospital to do but enjoy the high quality food, beverages, and environment! (this has an image in my mind of when I had to distract my young son with a pretty red balloon as the doctor had to give him a painful shot in the arm, or better yet the Wizard of Oz reference of not looking behind the curtain,just watch the show up front.
Regardless of how many want to package the approach, anything short of the hospital retaining complete ownership, control and most of the benefits of such retail spaces, it cannot be deemed a Maximum Return Initiative. That's my feeling and I'm sticking to it.
Thursday, April 30, 2009
The Tide Is Shifting(?)
It has been a very busy month of getting the message out to the masses! We have now developed very strong vendor partnerships that will bring tremendous savings to the healthcare systems, and their cost of goods (COG). Pricing is only one small part of the overall plan as a good logistical structure is just as critical. A good cost on a pound of coffee, or a great morning muffin, really means nothing if it cannot get to the Barista or bakery case in time to sell it. Our new e-commerce system will allow each hospital to have specific access and menus developed for their individual product listings, along with specific regionally developed cost structures. Having a single portal location that each hospital can go to and place orders for multiple vendors will expedite the entire process. They will not be inundated with multiple vendor calls or pile of literature to go through. Weekly specials, special promos and seasonal goods will all be part of our monthly notifications. The buying power and cost advantage will be very quickly realized across the line. In many cases we have reduced the COG by as much as 30% on product and general supplies. We had one cafe that was paying over $0.28 for his logo cup/lid/jacket combination. We were able to switch him over to a high end product with one of our partners that reduce that same combo to $0.185!! I'm not a math wiz, but that adds up quick. In addition, we were able to reduce his required minimum orders by 35%, which freed up much of his monthly/quarterly CODB (cost of doing business).
Our clients will be introduced to our vendor partnerships via our marketing packets and email flyer's.
With this type of collective buying and system power behind you and your healthcare system/hospital location, the tide of profitable operations is (can be) shifting away from the third party retailers that take your best spaces and its strong income potential out the front door and to their bank. Let's make that tide a tsunami shift that goes to your bottom line to the benefit of your true mission.............improve patient care!
Our clients will be introduced to our vendor partnerships via our marketing packets and email flyer's.
With this type of collective buying and system power behind you and your healthcare system/hospital location, the tide of profitable operations is (can be) shifting away from the third party retailers that take your best spaces and its strong income potential out the front door and to their bank. Let's make that tide a tsunami shift that goes to your bottom line to the benefit of your true mission.............improve patient care!
Tuesday, March 24, 2009
Sign Of The Times, Or Time To Sign?
Many of my presentations are met with tremendous enthusiasm for the concept of a retail initiative within the particular campus/system that I am visiting. They can see the benefits of offering their staff, visitors and patients a much desired, and in some cases a much needed, service. They see the extremely lucrative potential to generate tens of thousands of dollars in profitability to the benefit of the operational "bottom line" or "gifting" to the hospital. With that being the case, what causes such extensive delays in at least signing up for one coffee station. is it the cost? I have a hard time thinking that the initial cost is the problem as we have proven with our benchmarks that the ROI on the initial study would be almost immediate (less than a year), in healthcare terms. But just to be sure we did not have any such hurdle to navigate, we designed the program to be a virtual "no capital required" program to the first 10 coffee stations.
Now I have to ask, "Is this a sign of the times?" A time that causes us to freeze at the idea that something could actually still generate a positive income? A time where any remote risk is so amplified that it creates a "constipation" of decision making? A time when, even provided the tool of success for free, there is so much budgetary tension that any appearance of an investment will cause outcries similar to that of an AIG bonus pay out?
While I understand the need for caution and protocols when inviting such venues into our healthcare world, why is it so easy for some systems to throw the keys to a third party retailer and say "here, you take this ball and run with it and we will watch you take the money to the bank"? I see this occur almost every week and it drives me insane.
Since a recent article ran in the Detroit Free Press regarding the retail concepts in healthcare, I have received no less than 20 calls and emails from people that are clamouring to be part of the program. These are companies that see the potential and want to invest in it.
The hospital community can benefit greatly with the appropriate guidance. It MUST BE appropriate and purposeful to the mission at hand. I cannot emphasize enough the importance of remembering who we serve and where we serve them. This is not a mall, Sam's Club or Home Depot. This is a hospital that serves a community in a manner that should be respectful of what those that come through the front doors are dealing with on a daily basis. This includes the physicians, nurses, environmental services, administration and volunteers. We want our front line people to experience just as much of a positive experience as those that you treat or nurture within the beds of the facility.
I believe that there is a real need that the hospital community is realizing more and more in these difficult/different times. It is a need to make the hospital experience more comforting and
appealing for the staff and visitor communities. This is so evident in almost every design element being implemented throughout the country. The first impression areas of atrium's, lobbies and vestibules are critical spaces to create that immediate comfort and "AAAAAAHHH" appeal. My dentist even knows this. I hated going to my dentist, until he put in a huge plasma TV, big comfortable recliners, field stone and wood finishes and a big area rug. This could almost describe someones living room........which is the idea. I am so de-stressed when I go in that I almost forget where I am (almost!). This is more of "the Sign Of The Times".
Our business plan provides for a net operating income of $500,000.00 annually for every 5 coffee stations MINIMUM. Can you imagine what a well designed, size appropriate and managed retail program could generate? I think it is "Time To Sign!", but that is just my 25 years of retail marketing experience talking.
I just remembered, I have a dentist appointment today. AWESOME!
Now I have to ask, "Is this a sign of the times?" A time that causes us to freeze at the idea that something could actually still generate a positive income? A time where any remote risk is so amplified that it creates a "constipation" of decision making? A time when, even provided the tool of success for free, there is so much budgetary tension that any appearance of an investment will cause outcries similar to that of an AIG bonus pay out?
While I understand the need for caution and protocols when inviting such venues into our healthcare world, why is it so easy for some systems to throw the keys to a third party retailer and say "here, you take this ball and run with it and we will watch you take the money to the bank"? I see this occur almost every week and it drives me insane.
Since a recent article ran in the Detroit Free Press regarding the retail concepts in healthcare, I have received no less than 20 calls and emails from people that are clamouring to be part of the program. These are companies that see the potential and want to invest in it.
The hospital community can benefit greatly with the appropriate guidance. It MUST BE appropriate and purposeful to the mission at hand. I cannot emphasize enough the importance of remembering who we serve and where we serve them. This is not a mall, Sam's Club or Home Depot. This is a hospital that serves a community in a manner that should be respectful of what those that come through the front doors are dealing with on a daily basis. This includes the physicians, nurses, environmental services, administration and volunteers. We want our front line people to experience just as much of a positive experience as those that you treat or nurture within the beds of the facility.
I believe that there is a real need that the hospital community is realizing more and more in these difficult/different times. It is a need to make the hospital experience more comforting and
appealing for the staff and visitor communities. This is so evident in almost every design element being implemented throughout the country. The first impression areas of atrium's, lobbies and vestibules are critical spaces to create that immediate comfort and "AAAAAAHHH" appeal. My dentist even knows this. I hated going to my dentist, until he put in a huge plasma TV, big comfortable recliners, field stone and wood finishes and a big area rug. This could almost describe someones living room........which is the idea. I am so de-stressed when I go in that I almost forget where I am (almost!). This is more of "the Sign Of The Times".
Our business plan provides for a net operating income of $500,000.00 annually for every 5 coffee stations MINIMUM. Can you imagine what a well designed, size appropriate and managed retail program could generate? I think it is "Time To Sign!", but that is just my 25 years of retail marketing experience talking.
I just remembered, I have a dentist appointment today. AWESOME!
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