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Innovative revenue generation.

G H Pink1, R B Deber, J N Lavoie

  • 1Department of Health Administration, Faculty of Medicine, University of Toronto.

Healthcare Management Forum
|December 5, 1991
PubMed
Summary
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Canadian hospitals are exploring innovative revenue streams across six categories. Success varies, requiring new business skills and stakeholder support for effective implementation.

Area of Science:

  • Healthcare Management
  • Health Economics
  • Hospital Administration

Background:

  • Canadian hospitals face increasing financial pressures.
  • Innovative revenue generation is a growing area of interest for healthcare institutions.
  • Traditional funding models may be insufficient to meet evolving healthcare demands.

Purpose of the Study:

  • To critically examine and classify innovative revenue generation strategies in Canadian hospitals.
  • To understand the factors influencing the success of these initiatives.
  • To identify the necessary skills and support structures for effective implementation.

Main Methods:

  • A comprehensive literature review was conducted.
  • Innovative revenue generation activities were critically analyzed.

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  • Strategies were classified into six distinct areas: clinical/diagnostic insured and non-insured services, hotel, retail, administrative services, and financial activities.

    • Main Results:

    • Canadian hospitals are actively pursuing diverse revenue generation strategies.
    • The success rates of these innovative activities are mixed.
    • Key factors influencing the selection and success of revenue generation activities were identified.

    Conclusions:

    • Implementing innovative revenue generation requires sophisticated business and risk management skills.
    • Successful adoption necessitates strong support from hospital boards, staff, and medical professionals.
    • Strategic planning and consideration of multiple factors are crucial for effective revenue diversification.