Revenue Growth: Redefining the Market Drives Growth

KEY TAKEAWAYS
  • Great success can sometimes be difficult to imagine until it is actually achieved.
  • The expansion of boundaries can produce even greater successes.
  • The way an enterprise defines their market highly influences the potential reach and revenue of that enterprise.
CHALLENGE

St. Helena Hospital, located in the beautiful Napa Valley, has existed since 1878. The primary market for the 116-bed campus has 20,000 residents, with a population of a mere 5,000 in the local town. This equates to the hospital having 5.8 beds per 1,000 people in the local market, while the national average is 2.6 per 1,000 people. As a legacy hospital that was founded by generous, philanthropy-minded leaders, it has an extraordinary history. However, it also has a spotted record of success and failure according to business metrics.

APPROACH & SOLUTION

To address a period of shrinking volume and losses, Chairman of the Board, Scott Reiner, recruited Terry Newmyer, market strategist, to be the hospital CEO. Terry’s role was dedicated to improving outreach and going beyond traditional geographic boundaries to acquire patients. Through a combination of both market analysis and outreach initiatives for programs such as world-class orthopedics, cancer center, heart institute, and the Take Ten lifestyle medicine program, the hospital resolved that instead of being a community hospital only, that the entire West Coast was its market. An example of new goal setting was to conduct 2% of knee replacements on the West Coast, instead of a locally guided metric.

RESULTS
  • A 60% growth of volume to the hospital in three years.
  • The average address of a patient admitted to the hospital expanded to seventy miles, compared to the national average of seven miles.
  • Patient satisfaction scores soared, with the hospital being recognized as “Top in the West” by NRC Picker for overall patient satisfaction.
  • With the introduction of “Destination Quality,” the hospital expanded from having no 5-star service lines, as measured by Healthgrades.com in 2009, to twelve separate 5-star service lines by 2012. Even Brian Williams on NBC national news brought attention to the “destination quality” attributes of the programs.
  • EBIDA for 2009-2012 improved by $50 million compared to the prior four years.

Why be an Entrepreneur?

Why would you ever want to be an entrepreneur? Taking such a path means that you’re most likely eschewing traditional professional comforts: some semblance of job security, a clear path to victory (or at least internal praise), and an environment in which expectations are clear. Following your entrepreneurial goals means embracing an uncertain future; long, meandering hours; and an end goal that is hazy at best.

However, this doesn’t deter some of society’s brightest minds from carving out their own professional path, so there is certainly something to be gained from answering your calling. Entrepreneur contributor Larry Alton sheds some light on the question, and gives us 5 reasons people become entrepreneurs. You should definitely check it out, but I can provide a little background information here.

A common theme that seems to run through each of these motivations is a special type of hunger. No matter what position you hold in an eventual company, the environment can become stale. We answer to a familiar set of clients, or we’re stuck with the same set of responsibilities. And far too often, we are subject to the expectations of others. An example would be the night owl who knows they work best at night, but have been worked into becoming an unproductive morning person. Or, you could be the employee with the million-dollar idea who has to weave through the administrative trenches just to put it in front of the right leader. But as an entrepreneur, your greatest responsibility is setting your own.

When you are able to follow your creative impulses, you can set your own pace and expectations. When that idea comes to mind, its up to you to put it in motion. That these are reasons for people to take that huge leap into the unknown speaks to their own courage and initiative.

Alton acknowledges that money is a driving factor for many to found their own companies. With popular examples like Zuckerberg’s Facebook or Page’s Google, it can seem that there is a secret formula to billions. But while that kind of revenue and growth isn’t impossible, more frustrations than you can imagine drive many hopefuls out of the game. With serious money as an incentive, but far from a guarantee, the best entrepreneurs do not allow themselves to be dictated by the almighty dollar. They’ve come with admirable conviction to make a difference so great, that it is worth any degree of uncertainty.

 

5 Tips for Entrepreneurs

Few entrepreneurs are as world renowned as Richard Branson. Founder of Virgin Group, his empire now spans over 400 companies, affording him a net worth of $4.8 billion. Though he’s come a long way from his humble beginnings, Richard has excellent advice for up and coming entrepreneurs.

“Remember what a company is,” Branson says. “A company is simply a group of people.” Cutting directly to the point, Richard Branson goes on to say that as a group of people, a company must be fostered, encouraged, and motivated. An entrepreneur is a leader of people, and it’s necessary to listen and support your employees.

To start a company without proper financial backing is setting yourself up to fail. “You know that there is a very very thin dividing line between success and failure ,” says Branson. Though the concept is scary, it’s very true. Proper preparation before launching a business is paramount if your looking to survive those early formative years.

Never stop learning. View everyday as an opportunity to grow and evolve. The work of an entrepreneur is never done, and without challenging yourself stagnation and complacency are invited into your life. Keep that pioneer fire burning in your heart. If you overcome a challenge, look to the horizon and prepare for oncoming obstacles. There will always be another glass ceiling to shatter.

Have a vision, a goal, and believe in it with everything you have. An entrepreneur’s company is born out of their personal desire to create. If you can’t believe in your dream, how can you expect others to do the same? Without faith in yourself, you’ve doomed your company’s journey before it’s begun.

The final tip is to be fearless. Few things in this life come without risk, and starting your own business is certainly not one of them. Take chances, leap at opportunities, and tear into openings with the same fervor that set you on this path. Entrepreneurship is a gamble wherein you put all of your dreams on the table, and though the stakes are high, you stand to win everything.