Impact Of Employee Satisfaction In Healthcare

Employee satisfaction can have a profound impact on any organization. Some may argue that employee satisfaction is a critical driver of financial success in any business. The impact of employee satisfaction on healthcare organizations, however, may be more complex and far-reaching than one might first imagine. In this essay, I will explore the impact of employee satisfaction on the financial success of a healthcare organization by examining how employee satisfaction effects individual job performance, patients’ satisfaction levels, and organizational culture.

Individual job performance

Statistical evidence shows a positive correlation between employee satisfaction and improved job performance. (Wright, Cropanzano & Bonett, 2007) An improvement

Angermeier et al. (2009) found evidence of a positive correlation between employee satisfaction and the perception of increased customer service skills. Additionally, in the field of healthcare, Press Ganey’s research identifies a direct correlation between employee satisfaction and patient satisfaction (Stanowski, 2009; Bhatnagar & Srivastava, 2012). So why is patient satisfaction so important in the healthcare setting? Like other businesses, satisfied customers influences increased market share by both word-of-mouth marketing and by generating repeat business. Healthcare, however, adds another dimension to the importance of satisfied customers; Customer satisfaction scores directly impact government reimbursement for medical costs. Many healthcare managers understand the value of marketing and how impactful “word of mouth” recommendations (also known as referrals) can be to an organization. In fact, research indicates referrals are a trusted means by which consumers confirm or acquire information about the organizations under consideration for meeting their healthcare needs (Dobele & Lindgreen, 2011). Additionally, referrals were more effective than other marketing tools typically used by healthcare organizations due to the enhanced believability when the referrer was unpaid, the referral is made voluntarily or was based on recent experiences (Dobele & Lindgreen,

Another important factor in profitability is the ability to retain customers. If patients are dissatisfied, they may choose to seek healthcare from a competing organization. If a pattern of customer dissatisfaction is systemic the consequences can be significant revenue losses. Multiple studies indicate patient dissatisfaction is related with failure to return to a healthcare provider (Zoller, Lackland & Silverstein 2001). A three year study at the Medical University of South Carolina concluded that a 10 percent decrease in mean patient satisfaction scores would predict as many as 250 patients that would not return for subsequent healthcare needs. At a rate of 3.4 visits per patient, the overall loss would equate to approximately 850 lost visits per year (Zoller et al., 2001). These lost visits would result in a financial impact as much as a 1.5 million dollar loss per year according to statistics from Kaiser State Health Facts (Rappleye, 2015). Thus far the principles of customer satisfaction discussed here hold true in nearly every business sector. In the healthcare market, however, there is another substantial reason to ensure patients have a satisfactory experience. Specifically, Medicare payments made to hospitals are directly affected by customer satisfaction scores. As part of the Affordable Care Act, an initiative was introduced by the federal government