Outpatient Surgery Magazine - Subscribers

Helping Hand - Outpatient Surgery Magazine - July 2019

Outpatient Surgery Magazine, providing current information on Surgical Services, Surgical Facility Administration, Outpatient Surgery News and Trends, OR Excellence and more.

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S urgical facilities track a lot of data — quality measures, patient census, service line revenue and so on. But here's something that no one regularly tracks: lifetime value. Yes, it's hard to track something that you don't have a clue exists. Look at it this way: What's a relationship worth to your business, whether your business is a hospital, an ambulatory surgery center, some other healthcare facility or a medical practice? Originally from the marketing world (where it remains a very power- ful idea), the concept of lifetime value involves looking at the worth of a customer not as the one-off revenue from a discrete sale or transac- tion, but as the value of the stream of sales or transac- tions over the entire lifespan of the customer relationship. Let's look at an example involving a sporting goods store. From the marketing context, a customer's value in dollars to the business isn't the average indi- vidual sale, perhaps $29.97. Instead, the true value is the total com- bined sales to the aver- age customer over the life- What's the Lifetime Value of a Patient? Calculating the true worth of a relationship to your surgical business. Economic Intelligence Mark F. Weiss, JD 3 6 • O U T PA T I E N T S U R G E R Y M A G A Z I N E • J U L Y 2 0 1 9

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