Private Equity and Patient Experience Management in Healthcare

Over the past few years, private equity (PE) has become an emerging force in the healthcare industry. PE’s involvement in healthcare has raised eyebrows as many are unsure how PE will impact healthcare’s biggest issues: healthcare access, quality outcomes, and cost.

 According to the Commonwealth Fund, private equity investors spent more than $200 billion on healthcare acquisitions in 2021 alone, and $1 trillion in the past decade. By investing in healthcare providers, pharmaceutical companies, physician practices, and digital health startups, PE firms aim to seize the potential for financial returns. However, to maximize their impact and ensure financial stability, these firms should look beyond immediate financial gains and prioritize overall experience outcomes like Net Promoter Score (NPS) and Online Star Ratings which are critical indicators of overall patient experience, patient loyalty, and new patient acquisition.

 

Understanding the Overall Experience: NPS and Online Star Ratings

 

Net Promoter Scores in Healthcare:

NPS provides valuable insights into patient loyalty and satisfaction. A high NPS correlates with increased patient retention and positive word-of-mouth marketing, essential for growth in a competitive industry. In today’s current consumer-friendly healthcare marketplace, it is essential that businesses not only ask the NPS questions but also make it an organizational priority to improve it.

 A focused effort to improve NPS will communicate to patients, employees, and other key stakeholders that you are committed to improvement and not solely financial gain.  Patients who feel valued and receive excellent care are more likely to return and recommend the provider to others. This supports new patient acquisition and retention initiatives which can lead to favorable financial outcomes.

 

Google Star Ratings in Healthcare:

In today’s digital age, Google star ratings have become an influential factor in shaping the reputation and success of healthcare organizations. According to healthcare digital marketing reports, 82.8% of patients use search engines to find a healthcare provider.

 Like NPS, Google ratings and reviews provide a valuable source of information regarding strengths and opportunities that can be leveraged for improvement. Google reviews often form the first impression potential customers have of a healthcare organization. With most patients relying on online searches to choose their healthcare provider, a high star rating can attract more patients and build trust from the outset. Ultimately, a high Google rating differentiates a business from its competitors, making it more likely that patients will choose them over others, further securing profitability and sustainability.

 

Driving Operational Efficiency for Resource Allocation

 

Measuring these metrics is just the tip of the iceberg. To ensure the success of their healthcare portfolios, PE firms must gain deeper insights into business operations to understand the root causes of negative experiences and identify inefficiencies within their businesses. This understanding allows for targeted resource allocation and streamlining of processes, ultimately reducing operating costs and improving financial stability. This is because sustainable financial returns come from long-term patient relationships and operational excellence.

 

How Tools Like Feedtrail Can Help

 Tools like Feedtrail’s XM Platform offer a comprehensive solution for collecting real-time patient feedback, gaining actionable insights, and driving growth. Feedtrail enables healthcare organizations to collect real-time patient feedback through customizable surveys, ensuring a continuous pulse on patient sentiment. This immediate insight helps identify and address issues quickly, improving NPS.

 Reporting tools, such as correlation analysis, also help direct organizations to understand which focus areas will have the biggest impact on improving NPS. Feedtrail’s AI-enabled advanced data analytics module, XM Insights, delivers actionable insights to aid in quickly identifying opportunities within specific patient populations and demographics such as gender, age, race, insurance, etc. Actionable insights to laser focus resources are essential to improve operations, while saving money.

 Moreover, the platform’s reputation management module enables organizations to proactively enhance their online presence and star ratings for online third-party review sites like Google, Healthgrades, and Yelp by sending promoters to leave reviews.

 By leveraging such tools, PE firms can ensure their healthcare investments deliver superior patient outcomes and sustainable financial returns through strategic resource allocation and targeted improvement efforts.

 

Wrapping Up

 

For private equity firms investing in healthcare who want to gauge and strengthen the success of their portfolios, prioritizing metrics like NPS and online star ratings doesn’t only improve patient outcomes, it is a strategic move for long-term financial success. By understanding the opportunities gleaned from actionable insights and focusing on improvement, PE firms can help healthcare organizations streamline operations, build patient loyalty, improve outcomes, securing a successful return on investment.

 

Want to see how Feedtrail can help? Watch our short product tour

 

 

About Kwasi Nyantakyi, MHA, Customer Success: Kwasi is a Customer Success Manager at Feedtrail. He is a healthcare professional with 8+ years of healthcare-related experience in various roles including healthcare operations, strategic planning, patient experience, and digital marketing. He holds a Master of Health Administration from Columbia University and a bachelor’s degree in Bioethics from the University of Rochester. In addition to his formal education, Kwasi is also a Certified Digital Marketing Professional and educated in Lean Six Sigma methodologies. Known for his ability to empower health systems and entities, Kwasi specializes in cultivating trusted online reputations, enhancing the patient experience, and optimizing operational processes. Outside of his professional endeavors, Kwasi enjoys spending quality time with his family, often found exploring the outdoors during leisurely walks or training rigorously for upcoming half marathons.