Retail Services Within Healthcare

With all of the potential for positive staff, visitor and patient experiences related to the offerings of tasteful and well manged retail services, comes the concern of staying true to mission of healthcare. There seems to be a tremendous amount of angst generated from this topic as it conjures up images of a strip mall within the atrium's of America's healthcare facilities. Or worse, the image of a dancing teenager holding a sign reading "Large Pizza $5.00" drawing attention from the family dealing with a stressful situation.




I have experienced tremendous anxieties on the part of the major stakeholders within many healthcare facilities throughout the country when discussing the possible placement of a Cafe' near the front entry of the hospital. Or even greater concern with the thought of designing a very nice Salon/Spa offering in full view of the general public. I really have found that most of this concern is not directed to the "idea" of offering such services, but rather it is the "manner" in which they are offered. Too many times there is a consultant that comes into the healthcare environment without a full understanding and/or compassion for the impact any function may have with regards to the true mission, Patient Care.

Patient Care is positively impacted with tasteful and useful retail offerings in many ways.

• Added revenue resources for "gifting" towards the needy
• Added revenue resources = equipment, technology and staff improvement capabilities
• Added staff services that equal a much more pleasant, more efficient, working environment. Salon, Cafe', Massage, Vocational Apparels, etc
• Added food or beverage offerings that keep family and friends close by for support
• Pleasant surroundings through design that provide a "reconnect" for the patient to the outside world. Greenery, Arts, Aroma, etc.
• A well trained compassionate staff that becomes an extension of the mission.

These are just a few positive impacts, but it is important to realize that the hospital that attempts to operate such areas like a hospital may fail. It will take a balance of both a healthcare and retail services mindset to truly provide the type of Return On Investment required for such an undertaking.

This is where most facilities fore go the idea of "handling" retail internally and give it to a third party retailer to provide the services. The hospital is "content" to be paid a fair lease rate for the space. This is where the needed control of both operations and PROFITS is lost. Most hospitals have the capacity to fulfill the truly needed services organically, as it relates to product delivery. Where the needed help is required is the area of design, build and management. All three can be delivered for far less than what is typical for what many, not all, healthcare facilities may think. There are three areas that I see as critical to a successful retail program.

• Define: Make sure it meets the NEEDS and not just the WANTS of the stakeholders.
• Develop: Make sure it does more than just LOOK really nice, it has to FUNCTION well in this environment.
• Deploy: Build it economically and on time, train the staff right (and keep training), get the right POS systems (good P&L reporting, etc.)

If you are a non-profit there are certain limitations that I am always advised of. It mainly has to do with the area of Marketing. Yes it is true that you are limited to marketing the offerings within your four walls, but I really do not see a purpose for such things to be added to the costs no matter who you are.

I have a client that operates a 400 bed facility with about 4,500 total staff within and around the campus. We conducted a detailed count of traffic in and out of three main door areas. Using a unit (person) impact system on a scale from 1 to 10 such as the following.......

• 1 for the patient due to immobility
• 2 for the visitor due to frequency and time on campus
• 7 for the staff due to greater levels of mobility and frequency on campus

.........we assessed the total annual units that would pass somewhere near a retail offering to be over 1 million. This of course is counting many people coming AND going, but that is all foot traffic with eyes, ears and noses which equal potential sales and needs to be filled.

It is very important to mention that this space needs to carry with it a design that allows for convenience and flow of a hospital's core businesses. For instance, the typical prescription in most hospitals that I have seen is written and provided to the patient, or family member on the floor where the care is being provided. Upon discharge that prescription fulfillment process should be as easy as picking up the package on the way out the door. This can also be the case with valuable revenues related to HME and DME fulfillment's.

There is so much upswing to the careful and considerate addition of retail services to a facility. The key will be the development of a strong internal team to work with compassionate external guidance.