Metrics Matter: How to Grow Your Share in the Hospice Market
When it comes to growing admissions to your hospice, you can either take market share from your competitors or find new sources for referrals. Which approach would be the most effective? The answer to that can be best determined by looking at hospice penetration in your geographical region.
As demonstrated in the above graph, Healthcare Market Resources, Inc. studied the 2005 Hospice Death Penetration Rate in the U.S. at the state level. This rate is defined by the number of deaths on Medicare Hospice Benefit at the time of death divided by the total number of anticipated deaths – the traditional way of looking at penetration. (Anticipated deaths exclude suicides and accidents.) In this case, the geography studied was at the state level. However, it is also useful to analyze and take into consideration hospice penetration at the county level – which is included in the Healthcare Market Resources’ Hospice Market Profile report set.
Using this Healthcare Market Resources Hospice Penetration Rate data, we conclude the following:
- There is a significant disparity in hospice penetration among states, with an average of 44% penetration in the top quartile of states and an average of only 21% penetration in the bottom quartile of states. Thus, it is important for hospice providers to be aware of the hospice penetration in their regional market to best determine how much opportunity exists for identifying new patients.
- The national benchmark of 34% hospice penetration can be misleading for hospice providers as they set a strategic course for growing their businesses. They would benefit more by looking at local hospice penetration statistics when deciding whether to focus on growing the hospice patient market or fighting for market share.
- To increase revenues, hospice providers in states with higher hospice penetration rates would likely benefit most by differentiating themselves in a positive way from their competition
- Hospice providers located in states with lower hospice penetration rates have a significant opportunity to increase their patient base.
Two ways to find previously unidentified hospice patients are:
- Approach specialists who have not considered hospice for their patients.
- Provide an “open access” admission model that includes more potential patients.
Click here to learn more about this report, or call us today at 215-657-7373 so we can discuss how you can conduct the correct analysis for you in your local region.