A05: Healthcare Retail Design with Vertical Mindset & Effective HCAHPS Impacts TMS Total Management Solutions J.C. Williams Services Toronto J.C. Williams Services Chicago 1327 Jones Drive, Suite 201D 17 Dundonald Street, Suite 300 350 West Hubbard Street, Suite 240 Ann Arbor, MI 48105 Toronto, ON M4Y 1K3 Canada Chicago, IL, 60654 +1 (734) 787-8236 +1 (416) 921-4181 +1 (312) 673-1254 www.WeAreTMS.com A05: Healthcare Retail Design with Vertical Mindset & Effective HCAHPS Impacts 10/3/2012 | 8:00 AM - 9:00 AM | ROOM 329 John Johnson – President Total Management Solutions, LLC
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TMS Total Management Solutions J.C. Williams Services Toronto J.C. Williams Services Chicago 1327 Jones Drive, Suite 201D 17 Dundonald Street, Suite 300 350 West Hubbard Street, Suite 240 Ann Arbor, MI 48105 Toronto, ON M4Y 1K3 Canada Chicago, IL, 60654 +1 (734) 787-8236 +1 (416) 921-4181 +1 (312) 673-1254
www.WeAreTMS.com A05: Healthcare Retail Design with Vertical Mindset & Effective
HCAHPS Impacts
10/3/2012 | 8:00 AM - 9:00 AM | ROOM 329 John Johnson – President Total Management Solutions, LLC
About The Speaker
Leanne Chadwick, Sr. Vice President TMS USA Leanne's background includes many years working within the retail industry of a family business and into management. She spent 10 years in the education sector in the United States and Internationally. Leanne brings to TMS a worldwide view developed from years spent in countries such as Australia, South Africa, and most recently Thailand. She served as Co-Chair of the ISB Tsunami Relief Network in Thailand, working with the Thai Government and the King’s philanthropic foundation
John Johnson, President TMS USA John has over 24 years of retail and new business development experience. He has served on a variety of national advisory boards, including: Philips Lighting (Home Depot Business Development Team), Keebler, Quaker Oats, Gatorade and Ocean Spray. John was responsible for the development of a national retailing program from scratch for Kmart, which was enormously successful. John has worked with clients such as Trinity Health, Ascension Health, University of Michigan, Summa Health, Detroit Medical Center, HFHS, St. Joseph Regional Medical Center and many affiliated physician groups.
• Introduction: • Learning Objectives • Why Healthcare Retail? • What is Retail in Healthcare Settings?
• The Process • Assess
• Market Trends – Example of Exit Survey Feedback • Market Trends – Example of Competition Survey Plan • Market Trends – Example of Traffic Counts & Impacts • Market Trends – Example of Focus Group Feedback • Business Plans
• Plan • Branding & Appeal • Layout & Flow
• Build • Monitor & Manage
• Strong Systems • “Typical Retail” Visual • The Way It Should Operate
Research Your Market We must have an objective, fact-based assessment of the retail potential of hospital facilities that pay back handsomely. The techniques include user surveys, focus groups, and in-person interviews
Analyze the Site Must have “retail eyes” that are able to identify waste or under-utilized space. All too often there is space that is not productive or that can generate high levels of new revenue. We also need insights regarding overall ambiance and experience.
Understand Competition In many locations there can be intense retail build-up, either main street or shopping mall type. This can impact the potential for in-facility retail – but not always.
Calculate Potential Revenue We need to know the retailing potential inside out: Calculate sales revenue, margins, operating expenses, and net revenue for each potential use and tenant. This will give healthcare management an accurate forecast of long-term cash flow generated from retail operations
Estimate Return on Investment The contractor partners give us an estimate of build-out costs. We then can give the healthcare administrators the return on investment (ROI) that the expanded or revitalized retail space will offer
Feedback and Observations One of the primary themes that emerged in discussions with the clinical staff that we talked with was an expressed need to be able to escape for a brief respite from the stress and intensity of the acute care setting. However, within the Hospital environment many reported that restful spaces to accommodate this quiet and private time are not readily available. Some of the quotations from staff include the following:
“We desperately need good coffee for all shifts”
“I need a place to unwind, have a good coffee”
“The vending room is depressing”
“….someplace that I can go on line and get a latte”
“…..a more convenient place to get a take home meal would mean the world”
“Need a place for a rest, escape, get away”
“Visitors are always asking for a place to get a quick coffee without walking to the cafeteria”
“The gift shop does not carry any items that appeal to us”
Assess - Business Plans
Potential Sales Volumes • Knowledge of retailing will project sales into the future. This is done on a store by
store and food service unit basis
Potential ROI • A combination of capital costs and revenue/profit forecasts is combined to specify
return on investment. The approach must be conservative
Five-year Plan • Professionally prepared five-year plans show sales revenue, operating expenses by
line item, gross and net profits, and capital costs.
True CODB • Regardless of the potential operating model, i.e. self perform or third party, the cost of
doing business must be reflected within the initial business plan to allow for a fully informed decision.
Professionally prepared business plans based on research and experience are critical in order to support the coming phases of “Plan” and “Build”. The forecasts must be conservative, so that the only surprises are good ones
Potential space planning from Patients, Staff, and Visitors surveys: Based on the focus groups, on line & physical surveys, plus the ‘hard numbers’ on in-institution spending potential, we will be able to translate this into dollar sales potential, and then into sustainable square feet of retail, food service, and personal services space. DON’T OVER BUILD! Block Plan Space Usage With hospital management we need to identify and review what space is available. Then a block plan of what types of retail and service uses will fit is prepared for discussion and approval. THE POTENTIAL & NEEDS DRIVE DESIGN, NOT THE FOOTPRINT OF AVAILABLE SPACE.
Identifying Retail Mix and Concepts Once the block plans are approved, The Team can make valuable, sustainable suggestions for several retail mix plans that includes options for self-performed operations and potential tenant leases. SOLID BUSINESS PLAN DRIVES SELECTIONS.
The results from the ‘consumer’ research, site, and competitor assessments are used to identify opportunities and the scope they would form
Confirm Strategy and Brand • Create a strategic direction and theme for the retail area • Fit with the brand-promise of the hospital • Consider the role retail will play in the the total hospital experience
Prepare Physical Plans • Ensure a creative yet practical retail experience. We understand the big picture and also
all the details
Add Creative Design • The days of “hospital green” and terrazzo floors are long gone. Your retail areas must be
functional, welcoming, interesting, and creative. Special designs can stimulate patients and improve their stay. Staff will love it
Prepare Architectural Designs • Municipal regulations are met along with building codes, safety issues, and LEED
Monday, Sep 19, 2011 08:01 AM EDT Why children’s hospitals tolerate McDonald’s There's a childhood obesity epidemic, yet top medical centers welcome fast-food restaurants. Why? Follow the money By Rahul Parikh Salon Media Writer
…..one parent observed that “McDonald’s is the only 24-hour food source. (Odd, since their food puts people in the hospital.)” When “Super Size Me” director Morgan Spurlock learned about the McDonald’s at a highly regarded Children’s Center, he called it “utterly irresponsible” and “a flagrant violation of the doctor’s pledge of “Primum non nocere” (First, do no harm.)
"Open your arms to change, but don't let go of your values." –
Dali Lama
Plan – Layout & Flow
Within the physical design plan is the need for experienced Retail Minded team members that can create a space that merges well with Healthcare’s Mission
The Relationship between Employee Satisfaction and Hospital Patient Experiences Spring 2012 ……….Health care is an enormously people-intense industry, and the importance of employees can hardly be under- estimated. ………health care requires employees to be very engaged and to perform at the highest level in order to ensure patient safety and satisfaction. ……….. retention of top talent is essential to meet the demand for quality patient care. ………. turnover is attributed to job stress and burnout ………. Patient experiences will not be good if employees are not happy.
In Summary: How Does Effective Healthcare Retail Design Impact HCAHPS?