The Intersection of Hospitality and Healthcare...Cornell Hospitality Proceedings • March 2012 •...

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The Center for Hospitality Research Hospitality Leadership Through Learning Cornell Hospitality Proceedings Vol. 4 No. 0 2 1 9 9 2 - 2 0 1 2 th ANNIVERSARY The Intersection of Hospitality and Healthcare: Exploring Common Areas of Service Quality, Human Resources, and Marketing by Brooke Hollis, M.B.A., and Rohit Verma, Ph.D. 2, March 2012 Cornell University College of Human Ecology Sloan Program in Health Administration

Transcript of The Intersection of Hospitality and Healthcare...Cornell Hospitality Proceedings • March 2012 •...

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The Center for Hospitality ResearchHospitality Leadership Through Learning

www.chr.cornell.edu

Cornell Hospitality ProceedingsVol. 4 No. 021992 - 2012

th

ANNIVERSARY

The Intersection of Hospitality and Healthcare:

Exploring Common Areas of Service Quality, Human Resources, and Marketing

by Brooke Hollis, M.B.A., and Rohit Verma, Ph.D.

2, March 2012

Cornell UniversityCollege of Human EcologySloan Program in Health Administration

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Advisory Board

The Robert A. and Jan M. Beck Center at Cornell University

Cornell Hospitality Proceedings, Vol. 4, No. 2 (March 2012)

© 2012 Cornell University. This report may not be reproduced or distributed without the express permission of the publisher.

Cornell Hospitality Report is produced for the benefit of the hospitality industry by The Center for Hospitality Research at Cornell University

Rohit Verma, Executive DirectorJennifer Macera, Associate DirectorGlenn Withiam, Director of Publications

Center for Hospitality ResearchCornell University School of Hotel Administration489 Statler HallIthaca, NY 14853

Phone: 607-255-9780Fax: 607-254-2922www.chr.cornell.edu

Niklas Andréen, Group Vice President Global Hospitality & Partner Marketing, Travelport GDS

Ra’anan Ben-Zur, Chief Executive Officer, French Quarter Holdings, Inc.

Scott Berman, Principal, Real Estate Business Advisory Services, Industry Leader, Hospitality & Leisure, PricewaterhouseCoopers

Raymond Bickson, Managing Director and Chief Executive Officer, Taj Group of Hotels, Resorts, and Palaces

Stephen C. Brandman, Co-Owner, Thompson HotelsRaj Chandnani, Vice President, Director of Strategy, WATGEric Danziger, President & CEO, Wyndham Hotel GroupBenjamin J. “Patrick” Denihan, Chief Executive Officer,

Denihan Hospitality GroupChuck Floyd, Chief Operating Officer–North America,

Hyatt

RJ Friedlander, CEO, ReviewProGregg Gilman, Partner, Co-Chair, Employment Practices,

Davis & Gilbert LLP

Tim Gordon, Senior Vice President, Hotels, priceline.comSusan Helstab, EVP Corporate Marketing,

Four Seasons Hotels and ResortsPaul Hineman, Executive Director, National Restaurant

AssociationSteve Hood, Senior Vice President of Research, STRJeffrey A. Horwitz, Chair, Lodging + Gaming, and Head of

Private Equity Real Estate, ProskauerKevin J. Jacobs, Senior Vice President, Corporate Strategy &

Treasurer, Hilton WorldwideKenneth Kahn, President/Owner, LRP PublicationsKeith Kefgen, Chief Executive Officer, HVS Executive SearchKirk Kinsell, President, The Americas, InterContinental Hotels

GroupRadhika Kulkarni, Ph.D., VP of Advanced Analytics R&D,

SAS InstituteGerald Lawless, Executive Chairman, Jumeirah GroupSteve Levigne, Vice President, U.S. Strategy & Insights,

McDonald’s CorporationMark V. Lomanno Executive Board Member,

newBrandAnalyticsDavid Meltzer, Chief Commercial Officer, Sabre Hospitality

SolutionsWilliam F. Minnock III, Senior Vice President, Global

Operations Deployment and Program Management, Marriott International, Inc.

Mike Montanari, VP, Strategic Accounts, Sales - Sales Management, Schneider Electric North America

Shane O’Flaherty, President, International and Ratings, Forbes Travel Guide

Chris Proulx, CEO, eCornell & Executive EducationCyril Ranque, SVP, Global Market Management, Expedia,

Inc.Carolyn D. Richmond, Partner, Hospitality Practice, Fox

Rothschild LLPSusan Robertson, CAE, EVP of ASAE (501(c)6) & President of

the ASAE Foundation (501(c)3), ASAE FoundationMichele Sarkisian, Senior Vice President, MaritzJanice L. Schnabel, Managing Director and Gaming Practice

Leader, Marsh’s Hospitality and Gaming PracticeTrip Schneck, Managing Partner, District Hospitality PartnersK. Vijayaraghavan, Chief Executive, Sathguru Management

Consultants (P) Ltd.Adam Weissenberg, Travel, Hospitality & Leisure practice

Leader, Deloitte & Touche USA LLP

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Thank you to our generous Corporate MembersSenior Partners

Friends4Hoteliers.com • Berkshire Healthcare • Center for Advanced Retail Technology • Cleverdis • Complete Seating • Cruise Industry News • DK Shifflet & Associates • ehotelier.com • EyeforTravel • Gerencia de Hoteles & Restaurantes • Global Hospitality Resources • Hospitality Financial and Technological Professionals • hospitalityInside.com • hospitalitynet.org • Hospitality Technology Magazine • HotelExecutive.com • International CHRIE • International Hotel Conference • International Society of Hospitality Consultants • iPerceptions • JDA Software Group, Inc. • J.D. Power and Associates • The Lodging Conference • Lodging Hospitality • Lodging Magazine • LRA Worldwide, Inc. • Milestone Internet Marketing • MindFolio • Mindshare Technologies • PhoCusWright Inc. • PKF Hospitality Research • Questex Hospitality Group • Resort and Recreation Magazine • The Resort Trades • RestaurantEdge.com • Shibata Publishing Co. • Synovate • UniFocus • Vantage Strategy • WageWatch, Inc. • The Wall Street Journal • WIWIH.COM

PartnersDavis & Gilbert LLP Deloitte & Touche USA LLPDenihan Hospitality GroupeCornell & Executive EducationExpedia, Inc. Forbes Travel GuideFour Seasons Hotels and Resorts Fox Rothschild LLP French Quarter Holdings, Inc. HVS Hyatt InterContinental Hotels Group Jumeirah GroupLRP PublicationsMaritzMarriott International, Inc.Marsh’s Hospitality PracticeMcDonald’s USAnewBrandAnalyticspriceline.comPricewaterhouseCoopersProskauerReviewPro Sabre Hospitality SolutionsSathguru Management Consultants (P) Ltd. Schneider Electric Thayer Lodging Group Thompson HotelsTravelportWATGWyndham Hotel Group

ASAE FoundationCarlson HotelsHilton WorldwideNational Restaurant AssociationSASSTRTaj Hotels Resorts and Palaces

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AbouT The AuThors

TheIntersectionofHospitalityandHealthcare:

Exploring Common Areas of Service Quality, Human Resources, and Marketing

byBrookeHollisandRohitVerma

brooke hollis, MBA/HHSA, MArch&UD serves on the leadership team of the Sloan Program in Health Administration. In addition to his work with alumni and industry, he mentors students, and serves as a faculty member. Beyond his appointment at Sloan, his ongoing professional consulting activities straddle the area of mergers and acquisitions and management consulting primarily for health and professional services firms. His background includes over three decades working in both the public and private sector, serving in senior management positions in a number of organizations in the health and financial services fields. While serving as president of a national professional association, he was involved in advocacy work with the federal government on policy and financial issues. For almost a decade he was a partner and president of a private firm that developed and managed specialty outpatient clinics, ran a durable medical equipment company and provided contract staffing programs for hospitals in three states. His work

as a partner in mergers & acquisitions advisory firms has involved consulting and transaction advisory work in 20 states and Canada with private equity funds, and both public or privately held domestic and international companies.

rohit Verma, Ph.D., is professor of operations management and executive director of the Center for Hospitality Research at the Cornell University School of Hotel Administration ([email protected]). Among

his research interests are product-and-service design and innovation, customer choice modeling, and quality process improvement of supplier selection strategies. His work has appeared in such publications as MIT Sloan

Management Review, Journal of Operations Management, and Cornell Hospitality Quarterly.

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exeCuTiVe suMMAry

Heldinfall2011,thefirstHospitalityandHealthcareRoundtablerepresentedacollaborationbetweentheCenterforHospitalityResearchandtheSloanPrograminHealthAdministrationatCornellUniversity.Whilespacelimitationscannotfullycapturethedepthofdiscussionduringtheroundtable,theseproceedingsattempttocapturesomeoftheideasdiscussedanddevelopedduring

theprogram.Nearlythreedozenparticipantsfrombothindustriessharedtheirbestpractices,withthegoaloffindingcommongroundandcross-pollinatingtowardsthedevelopmentofimprovedstrategies. Beyondthemanyintersectionsofthetwofieldsnotedinthebodyoftheproceedings,arecurringthemefortheroundtablewastheideathatsuccessinbothhealthcareandhospitalitydependsonthecoreprincipleofcreatingacultureofrespectfultreatmentandvaluingallstakeholders.Aneffectivecultureengagesstaffmembersandensuresthattheyfeeltheirworkisimportantandappreciated.Atthesametime,effectiveoperationsdependoncontinualandcarefulmeasurementofcustomersatisfaction,usingsuchrubricsasnetpromoterscoresandthenationalHospitalConsumerAssessmentofHealthcareProvidersandSystems(HCAHPS). Aparticularchallengeformanyhealthcaresystemsinvolvesagedfacilities,particularlythoselocatedininnercities.Whilethefacilityitselfmaylargelybeinflexible,thestaff ’sapproachcanhelpovercomethatnegativefactor.Othersmalltouchesalsohelp,suchasmakingsurethefacilityissparklingclean,uncluttered,nicelydecorated,andproperlylighted.Foodserviceisacriticalpartofpatientsatisfactioninfacilitiesofallkinds.Manyhospitalsaremovingtoacatering-styleapproachthatbringsfoodtopatientswhentheyneedit.Seniorcareandcontinuingretirementcare facilities expresslyusehospitality-typeapproaches,withguestswhoare long-termrather thantransient.Asistrueofmanysegmentsofthehealthcareindustry,thecustomerforseniorlivingfacilitiesisnotonlytheclientbutalsotheclient’sfamily.Thus,aholisticapproachisneededthatinvolvesresidentandfamilyalike. The healthcare system faces financial challenges, as it is likely that hospitals in particular will see reducedpaymentlevels.Forthisreason,healthcaresystemsmustpayparticularattentiontocostsandfindwaystoapplyinnovativeideasfromhospitalityandotherareastoreduceinefficiencieswhilemaintaininghighqualityoutcomes.Forsocietyasawhole,thegreatestcostsavingsmaybetohelppeoplestayhealthy,andmanyhealthcaresystemsareencouragingbehaviorthatpreventsordelaysillness,oftenborrowingideasfromthehospitalityindustry. Finally, the flow of expertise between the two industries can run in both directions. While healthcare isbenefittingfromahospitality-styleapproachoffocusingonaserviceculture,thehospitalityindustrycanlearnfromhealthcare’sexpertise incomplex-systemmanagement,whichinvolvesasystemwithmanymovingparts,someofwhichareindependentofeachother,thepresenceofnumerousintertwinedlegal,humanresource,andsupplychainsubsystems,workingwithmultipledecisionmakersandstakeholders,andacollaborativeapproachtoproductandserviceinnovation.

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Cornell hospiTAliTy proCeedings

Withinthecontextofprovidinghighqualityclinicaloutcomes,managersintheU.S.healthcaresystemareworkinghardtosolveseveralproblems,includingthechallengingandinterrelatedproblemsofhowtocontroloperatingcosts,howtoimprove employee retention, and how to satisfy customers and stakeholders.

Beyond that, the industry faces substantial capital expenses when constructing new facilities andrenovatingormaintainingexistingagingstructures.Inshort,manyoftheissuesfacingthehealthcaresystemaresimilartothoseofthehospitalityindustry.

TheIntersectionofHospitalityandHealthcare:

Exploring Common Areas of Service Quality, Human Resources, and Marketing

byBrookeHollisandRohitVerma

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Beyondtheseoperationalandcapitalplanningissues,theintersectionsbetweenthefieldsofhospitalityandhealthcarecontinuetoexpand.Themanyareasofoverlapcallforin-novativethinkinginbothindustriesastheysharetheirbestpractices.Areasofcommoninterestincludemedicaltravelandtourism;hotelsastransitionalcarepartnersand,moretraditionally,asplacesforvisitingfamilymembers;there-cruitingofleaderswithhospitalitybackgroundsbyhealthcareorganizations;theexplodinggrowthoftheheavilyhospitali-ty-orientedseniorlivingandcareindustry;workingtomeetMedicare’snewHCAHPSperformancecriteria;increasedfocusonthemeasurementofpatientandstaffsatisfaction;recognitionoftheneedtobettermanagethe“hotelfunctions”ofhospitalsandothercarefacilities;servicesoutsourcedbyhealthcareorganizationstohospitalitycompanies;achang-ingparadigmwherefamiliesarenow“guests,”withstay-overfacilitiesdesignedintopatientrooms;thegrowthofcomple-mentaryandalternativemedicalspas—somewithaffiliationswithgroupsliketheClevelandClinic;hospitalscontractingwithhospitality-orientedcompaniesforserviceexcellenceandleadershiptraining(e.g.,Ritz-Carlton,FourSeasons,andDisney);increasedinterestinevidence-baseddesignresearchandhiringofhospitalityconsultantsinplanningnewhealth-carefacilities;andthegrowthofnewmodelsthatincorpo-ratehospitalityideasincreatingamorepatientandfamilycenteredenvironment(e.g.,likePlanetree™).

Pointingouttheimportanceofcross-pollinationbe-tweenthetwoindustries,ProfessorRohitVerma,roundtableco-chairpresentedsomeoftheprinciplesthathospitalityexecutivescanlearnfromthehealthcareindustry.Althoughhospitalityoperationshavetheirownlevelsofintricacy,theoperatingissuesthatfacehealthcareoperatorsareevenmorecomplex.Healthcaresystemsinvolvemultipledecisionmak-ersandnumerousstakeholders,includingphysicianswhooftenarenotemployees.Theyalsohavemanymovingparts—someofwhichareinterdependentandothersofwhichareonlypartiallyso.Healthcare’snumeroussub-systemsarelikewisecomplicated,astheyinvolvelegal,revenue,human-resources,andsupply-chainissues.Whilehotelsmusthavedisasterplans,healthcaresystemsareatthenexusofanydisasterandmustcarefullymanagecriticalprocesses.Inshort,healthcareisahighstressenvironment.Atthesametime,healthcareinvolvesacollaborativeproductmuchlikehospitalityandisalsofocusedonserviceinnovationinthemidstofthiscomplexity.

Thus,hospitalityandhealthcarehavemanychallengesandconcernsincommon,butthehealthcareindustryisgroundzeroforpoliticalpolicymaking,unlikethehospitalityindustry,andinteractionswiththehealthcaresystemexcitegreateremotionamongallstakeholdersthanthosetypicallyfoundinhospitality.AsexplainedinthisProceedings,perhapsthemostcriticalmanagementstrategyappliedbythehealthcareindustryistoinstillacultureofservice.Coupledwithafact-basedapproachthatsetsgoalsandconstantlymeasuresresultsinallareas,healthcaresystemscanmanagetheirinherentintricacy.Benchmarksaresetbymanagersandalsobyregulatorsandotherstakeholders,reinforcingthecomplexityofthemanager’sjob.Thus,althoughhealingpatientsremainsjobone—itisnolongersufficientmerelytohealthepatient.Surroundingthatcriticalgoalismeetingtheneedsoffamilymembersandcaregivers,whilecontrollingcostsandmeetingappro-priatestandards.Acomplexbusiness,indeed.

Opening Keynote Speech:ApplicationsofHospitalityTechniquesHelpDriveHospitalPerformanceandCultureInhisopeningremarks,GerardvanGrinsven,presidentandCEOofHenryFordWestBloomfieldHospital,WestBloomfield,Michigan,explainedthatpatientsatisfactionisaresultofaphilosophythatisembeddedintheculture—aphilosophythatalsoextendstoemployeeretentionandgrowth.FormerlyavicepresidentwiththeRitz-CarltonCompany,vanGrinsvennotedthatpeopleweresurprisedwhenahotelierwasappointedasheadofahealthcaresys-tem.Hepointedout,however,thatgiventhetwoindustries’commonissues,embeddingtheRitz-Carltonphilosophyofengagingstakeholderswasthekeytocreatingasuccessfulculture.AlthoughtheMichiganfacilitywasnewlyopened,heexplainedhowthisapproachcanbeeffectiveinanyfa-cility.Itisnotamatterofofferingluxuryorhavingfinefa-cilitiesbutisinsteadamatterofembeddingtheculture.Infact,whiletheWestBloomfieldfacilityisquitenice,itwasdesignedtobeacomfortablepatient-andfamily-friendlyenvironment—andnotaluxuryhotel-typefacility.

TheseeffortsarenotlimitedtoWestBloomfield—thishospitalispartofthelargerHenryFordHealthSystem(HFHS),whichhasasystem-widecommitmenttoqualityandimprovement.CEONancyShlichtingspecificallyse-lectedvanGrinsvenbecausehecouldsupplyideasthatshe

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ageofemployeeswhoareactivelydisengaged.Somearedisengagedbecausetheirunspokenneedsarenotmet,andsomearetrulyjustworkingforapaycheck.Needlesstosay,it’simportanttodeterminewhichemployeesarewhich.VanGrinsvensaidthatabout30percentofemployeestypicallyareengagedintheirjob,andanother50percentarenotengagedbutarealsonotdisengaged.Theydotheirjobbutdon’textendthemselves.Toengagetheseemployees,manag-ersmustidentifythoseworkers’unexpressedneeds.Forthe20percentthatareactivelydisengaged,abouthalfcanbeengaged,againbyworkingwiththeirneeds.Theremaining10percentprobablyneedtofindworkelsewhere.

Value-FocusedImprovementPresentingacasestudyofhowCayugaMedicalCenter(CMC),inIthaca,improvedpatientandemployeeratings,CEORobMackenzieoutlinedasimilarapproach,citingcultureandvalues,supportedbycontinualmeasurement.Alludingtoakeydifferencebetweenhospitalsandhotels,henotedthatahospital,unlikeahotel,maynoteasilyofferaVIPprogramnorissuchaprogramalwaysappropriateforitsparticularsituation.Ahospitalcan,however,expanditsservicesbeyondsickcaretoofferhealth-orientedservicesthatengagethecommunity,asCMChasdone,suchasafit-nesscenter,spa,andcenterforhealthyliving.

ButevenwiththeegalitarianapproachthatCMCat-temptstoprovide,hesaidthatit’simportanttomakeeachpatientandemployeefeelthattheyarecaredfor.EchoingvanGrinsven’sformulaforemployeegrowth,MackenziesaidthatCMClikewiseinvestsinitspeople,withagoalofaligningemployeesandcustomerservice.Asanexample,henotedthatsometimesafinancialbonusispartofthatalign-

feltcouldbeappliedtotheirentiresystem.Itappearsthatsomeoftheseideashavehelped,asHFHSwasrecentlyrec-ognizedasoneofonlyfour2011recipientsoftheMalcolmBaldrigeNationalQualityAward.

BuildingCultureTobuildacultureofsuccessinemployees,vanGrinsvenstartsbyrecruitingtalentedpeoplewhowillfittheoperationandtheninvestsinthemtoencouragetheirgrowthinthejob.Inthisregard,vanGrinsvendistinguishesbetweental-entandskillsets.Peoplewhohavethetalenttobenaturallycaringaboutpeoplecanestablishrelationshipswithclientsregardlessoftheirinitialskillset.Toidentifypeoplewiththesetraits,HFHShasadaptedtheapproachesusedatRitz-Carltontoscreenallapplicants—includingmedicalstaff.

Onceamanagerhasconfirmedthatapersonwillfitwellwiththeorganization,it’scriticaltohelpthatpersongrowintheposition.Thistakesinvestmentinemployees,andcoachingthemontalentsthattheyhave(ratherthantryingtogivethemskillsthattheydon’thave).VanGrinsvenpointedtoafailuretoinvestinemployeesasamajordriverforstaffturnover.Asheexpressedthisstaff-developmentformula:Talent + Fit x Investment = Growth.Additionally,thisapproachofencouraginggrowthinemployeessimplifiesthemanagementmodel.Toooften,hesaid,heseessystemsasbeingsocomplicatedthattheyaredifficulttocontrol.

Withapriorityofstaffgrowthandaculturalfocus,hehasseenthatahealthcaresystemwillachieveitsgoals,regardlessofthenatureofthefacility—becauseemployeeswillbeengagedandturnoverwilldiminish.Forthisreason,HFHSappliesemployeeengagementasameasureofsuccess.Standinginthewayofthissuccessmaybeacertainpercent-

Gerard van Grinsven: patient satisfaction is the result of a philosophy that is embedded in the hospital’s culture—and not just because of a modern facility.

Rob MacKenzie: it’s important to make both patients and employees feel that they are valued. For employees, monetary incentives are helpful.

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ment,andemployeeincentivesareapartoftheprogramforimprovingcustomerservice.

CMC’sfocusinthisregardistodrivepatientsatisfac-tion.Itmaintainsacustomerservicecouncilandmeasurescustomerservice,seekingtoincreasethepercentageofpatientsthatratetheirtreatmentat5outof5.Satisfactionlevelshaveincreasedsteadilysincetheprogrambeganin2007.CMCalsohasseenaconcurrentincreaseinrevenue.

Mackenziesuggeststhateffectiveemployeeevaluationgoesbeyondmeasuringwhat’sinajobdescription.Instead,employersshouldmeasuretheirassociates’senseofbelong-ingandofpurpose.Theissueforemployeeengagementisdeeperthansimplyaquestionofwhethertheyhavethetoolstodothejob.Employeesneedtofeelthattheyhavepowertoachievegoalsandthattheyarelistenedto.Indeed,theyneedtofeelthattheyarepartofanalignedteamatwork.

FindingPromotersamongEmployeesandClientsForJohnDeHart,co-founderandCEOofVancouver-basedNurseNextDoorHomeCareServices(andagraduateoftheCornellSchoolofHotelAdministration),thebasisofimprovementisanetpromoterscore(NPS).Ratherthanconductthetraditionalsatisfactionsurvey,hisfirmmakesregularphonecallstoaskjusttwoquestionsofbothem-ployeesandclientsacrossCanada.First,onascaleof0to10,wouldyouenthusiasticallyreferourservicetoafriend(inthecaseofclients)orasaplacetowork(inthecaseofemployees)?Second,whyorwhynot?Thisquestioniscriti-calforidentifyingissuesthatcausepeopletobepromotersordetractors.

TheNPSapproachlabelsthosewhogiveascoreof9or10aspromoters,7or8asneutrals,andthosewhogivea6orlessasdetractors.DeHartpointedoutthatthemostcritical

elementofthissystemisthatallfeedbackisinrealtime.Cultureandcustomerservicearemeasuredeachday,ratherthanwaitingforanannualorevenquarterlyreview.Thenetpromoterscorebecomespartoftheemployees’jobreviews.Giventherelativelylowsalariesforworkersinhealthcareandhospitality,heseesrecognitionforajobwelldoneasakeyincentive.Managersaretrainedtorecognizepeoplewhoreflectthesystem’scorevalues.DeHartaddedthatwiththisapproach,hisfirm’sturnoverhasplummetedto7percent—inanindustrythat,likehospitality,usuallyhasturnoverinthehighdoubledigits.Thishasalsoledtobusinesssuc-cess—asthefirmhasbeencitedasoneofthefastestgrowingcompaniesinCanadaandwasanErnstandYoungEntrepre-neuroftheYeardesignee.

CostofHealthcareVanGrinsvenopenedadiscussionontheelephantintheroom—theescalatingcostofhealthcare.Heseesthebiggestcostsasstemmingfromwasteandfailedcommunication.Staffturnoverisalsoseenasasubstantialcost.Costreduc-tionwillonlybepossibleifallstakeholders,includingpa-tients,areinvolved.Asanoutsidertothehealthcaresystem,hewassurprisedwhenhefoundoperatingandmanagementtrendsthatseemedtobecounterintuitive.Forinstance,nurseswereincreasinglypulledawayfrompatients,andtheirworkhadadecreasingfocusonpatientcare.Reversingthattrendledtomorecommunicationbetweenpatientsandnursesandmorestaffengagement.

Perhapsthegreatestopportunitytoreducethesocietalcostsofhealthcareistofocusonhealth,ratherthansickcare.ReflectingtheCMCapproachofcommunityinvolvement,VanGrinsvenpointedtothereturnoninvestmentthatcomesfrominvestingincommunitywellness.Hebelievesthatthecommunityneedstoknowthathealthcaresystems

Jill Guindon-Nasir: by getting senior leadership to demonstrate that they really believe that the organization can be the best, it will become the best, despite having an old facility or other challenges.

John deHart: A real-time net promoter score helps keep track of customer satisfaction, and employees need recognition for a job well done.

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wantresidentstoworkonstayinghealthy.Theideaistoswitchfrombeingahealthcareorganizationtobecomealife-styleandhealthpromotionorganization.

Oneapproach,suggestedbyStephanieAnderson,chiefacquisitionofficerofHealthCareREIT,istoensurethatthehospitalandpost-acute-careprovidersworkinpartnershiptodevelopprogramstohelppatientsbecomewellenoughthattheywillnotneedtobereadmittedtothehospital.Inthisregard,Cornell’sMaryTabacchiaddedthatembeddingwellnessactivitiesintreatmentisawonderfulapproach,butshenotedthatchangingpeople’shabitstakesconsiderabletime.

JohnRudd,CFOandseniorvicepresidentatCMC,pointedtotheCayugaCenterforHealthyLivingasapro-gramthatdoesattempttohelppeoplerecoverafterbeingsickbutalsoisaimedatincreasingpeople’swellnessbeforetheybecomeill,andistherebyintendedtocutcosts.Thisprogramworkswithphysiciansbycreatingareferralsystemthatengagespatientstoparticipateintheirownlife-styleimprovements.Forinstance,CMC’scardiacrehabilitationprogramislocatedinafitnesscenterthatwelcomesthegeneralpublicbutisalsoalignedwiththehospital.Therearealsophysicaltherapyandmassageandspaservicesinthesamebuilding.Averageageofthefitnesscentermembersis50.

RelationshipbetweenCultureandFacilityDesignFacilitydesignisalsoafactorinbothcostsandpatientsatisfaction.Manyhealthcarefacilitiesweredesignedinanearliererafordifferenthealthcarepatterns.VanGrinsventhoughtthatthosetraditionaldesignswereneitherneces-sarilyhealingforpatientsnorsupportiveofemployees.Newdesignphilosophiesincludebringinginnatureor

viewsofnatureandavoidingaclinicalfeel.So,insteadofasterile,whiteenvironment,newfacilitiesincludeenlargedtreatmentroomswithmoreprivacy,bothtoreducecross-infectionandtoimprovehealing.Inplaceofthetraditionalclinicallobby,hisfacilityentrancelookslike“mainstreetMichigan,”ashecalledit.

Increasingly,evidence-baseddesign(EBD)researchisreinforcingthevalueofanumberofthesedesignideasforpatientsandemployees,notedCornellProfessorFrankBecker,co-chairoftheCenterforHealthDesign’sResearchCoalition.RosieFeinberg,principalofSFADesign,addedthatcreatingspaceswherepatients,families,andstaffcanfeelmorecomfortablehasmultiplebenefits—someofwhicharereflectedinEBDresearch,andsomeofwhichcomethroughincommentsfrompeoplewhousethespace.Awelldesignedenvironmenttappingintoideasfromthehos-pitalityworldcanalsohelpenhancetheculturebyreinforc-ingemployeepride.

Thisincreasedinterestinapplyinghospitalitydesignideasinhospitalswashighlightedinthe2010Modern Healthcare DesignAwardsarticle,whichwastitled“Hospi-tableHospitals.”Thearticlestated:“Theblurringofhospitalandhospitalitycontinuedinthe25thannualdesignawardswithsomehealthcarearchitectsconsultingwithhotelandresortdesignersonhowtobesthelppatientsfeelathome.”Itappearsthistrendwillcontinue—tryingtodevelopcost-effectiveideasfromhospitalitythatcanbeadaptedtohealthcarefacilities.

TheSpecialProblemofOlderFacilitiesTherealityformuchofthehealthcareindustryisthatthesystemsmustfunctionwithintheirexistingfacilitiesintheirexistinglocations,andnewconstructionoramajor

Franklin Becker: grand style is not necessary to create a hospitable environment. even modest changes in the work environment can greatly improve employees’ attitudes.

Jennifer Schwartz: For aging inner-city hospitals, an excellent patient experience is the key.

John Rudd: Cayuga Medical Center has been focused on trying to influence life-style modification via their venture with the fitness facility which hosts their cardiac rehab unit.

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ModupeformerlyworkedfortheRitz-CarltonCompany,andhebelievesthattransferringthatcompany’sapproachtothehospitalbusinessmakesgoodsense—thatis,“ladiesandgentlemenservingladiesandgentlemen.”Thisisparticularlyimportantforthesupportstaffsincetheyoftenhavemoretimewithpatientsandfamiliesthantheclinicalstaff—andcanmaketheexperiencemuchmorepositive.

Nodifferentthanahotel,thehealthcarefacility’sgoalistocreateamemorableexperienceforthepatient.Thus,Modupeworkstohavethestafffocusedonbeingpartofahealingenvironment,takingtheircuesfromthepatientsthemselves.Managementassistsbyfocusingonthestaffneeds(ratherthanworryingabouttheinflexibilityoftherooms).Thisextendstosuchpracticesasstartingmeetingswithanybadnews,sothatthemeetingcanendonaposi-tivenote.Applyingthesehospitalitypracticesandideashashelpedmakesubstantialimprovements(gainsof50to60percentilepoints)inPressGaneypatientsatisfactionscoresandsimilarlevelimprovementsinHCAHPSscores(HospitalConsumerAssessmentofHealthcareProvidersandSystems,agovernment-mandatedstandard).1

Excellentstaffmaynotbesufficienttobringinpatients,however,ifphysiciansdonotwanttoworkinafacility,cau-tionedFoxrothschild’sSchwartz.Cityhospitalsoftenlocate

1Administereduptosixweeksafterapatientisdischarged,theHCAHPSsurveyaskspatients27questionsabouttheirrecenthospitalstay.Eighteencorequestionsexaminesuchmattersascommunicationwithnursesanddoctors,theresponsivenessofhospitalstaff,thecleanlinessandquietnessofthehospitalenvironment,painmanagement,communicationaboutmedicines,dischargeinformation,overallratingofhospital,andwhetherpatientswouldrecommendthehospital.Otheritemsadjustforthemixofpatientsacrosshospitals,andexamineCongressionallymandatedreport-ingissues.

renovationisnotaprospect.JenniferSchwartz,apartneratFoxrothschild,pointedtothefinancialanddesignchal-lengesofaginginner-cityhospitals,builtinthe1950sorearlier.Suchfacilitieshavesemi-privateroomsforobstetrics,forinstance,butmanypatientsareunwillingtocometothehospitaliftheycannothaveaprivateroom.Complicatingthismatteristhepaymentsystem,particularlyasitrelatestotheproportionofcharitycases,whichareafunctionofthehospitals’locationandwhichthemanagementteamcannotcontrol.Often,theonlywayforthistypeoffacil-itytodistinguishitselfisbyofferinganexcellentpatientexperience.

Evenwhenafacilitycannotberedesigned,legacyfacilitiescanbemademorehomeliketopromotearesiden-tialfeel,suggestedSFA’sRosieFeinberg.Simplyhangingartworkinacorridorhelpsimprovethepatientexperiencebygivingpeoplesomethingtoseeandlookforwardtoontheirwaypast.FranklinBeckeraddedthatgrandstyleisnotneededtocreateahospitableenvironment.RobMackenziepointedoutthatoneinexpensiveandhighreturninvest-menttheyhavemadeisinenvironmentalservicesthatkeeptheirfacilitycleanandsparkling.

KunleModupe,directorofNewYorkPresbyterianHospitalatWeillCornellMedicalCenter,pointedtothecriticalroleofpeopleinallfacilities,particularlythosethatarenotnew.SpeakingofhisNewYorkfacility,heexplainedthattheentryareamakesonefeellikebeinginahotel,buttheroomsthemselvesareold.SupportingvanGrinsven’sandDeHart’sfocusoncultureandpeople,Modupesaidtheanswertothechallengeofolderfacilitiesispeople.Lead-ersmustinculcatethecultureinthestaffsothattheyseethatwhattheyaredoingisworthwhile.LikevanGrinsven,

Stephanie Anderson: hospitals can partner with post-acute-care facilities to help patients maintain their health after a hospital visit.

Rosie Feinberg: simple design elements can improve patients’ attitudes, even when health-care facilities cannot be redesigned.

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12 TheCenterforHospitalityResearch•CornellUniversity

physicianserviceofficesinsuburbanareasinanattempttodrawinpatients.Theroleplayedbydoctorsiscriticalinthiseffort,sincetheycareaboutfacilitiesandequipmentandmanyarenotemployedbythehealthcareorganizationitself.Sometimesittakesafinancialincentivetodrawphysicians.

Roundtableparticipantsofferednumeroussuggestionsforimprovingasuperannuatedenvironment,butmostagreedwithModupethatacaringcultureiscritical.Ran-dalRichardson,presidentofHyatt’sseniorlivinggroupVi(formerlyClassicResidencebyHyatt),pointedoutthatevenifyouhaveahigh-endenvironment,thefacilitywillnotbesuccessfulwithoutacaringculture.EstherGreenhouse,anenvironmentalgerontologist,commentedthatolderenvi-ronmentssometimeshavethebenefitofconferringmeaningtopatients.Thatsaid,shesuggestedthatthevisualenviron-mentiscritical.Sometimesthatrequiresnothingmorethanmodifyingorgivingpeoplecontroloverthelighting—espe-ciallysinceatage65peopleoftenneed3to4timesasmuchlightaswhentheywereyounger.Feinbergurgedareductioninclutterasafirststepforrenovationwhenbudgetsaretight.Suchitemsasdeadplantsandburnedoutlightbulbs—whichcanbeeasilycorrected—sendanegativemessage.

BrookeHollis,executivedirectoroftheSloanPrograminHealthAdministrationandroundtableco-chair,pointedoutthatevencosmeticchangescanmakeadifference.HenotedpriorworkbyProfessorBeckerandcolleaguesthattestedmodestcostchangesinanursingstationarea,asoneexample.Thestudyfoundthatemployees’ratingoftheen-vironmentimprovedwiththechanges,andthatthepatients’andfamilies’perceptionsofqualityimprovedaswell.

ACloudyRevenuePictureForallU.S.hospitals,theprospectofreducedrevenueloomslargeasthepopulationages.Anagedpopulationtendstohavemoreillnesses,andhealthcaresystemsmustdeterminehowtodealwiththatissue.Morecritically,theU.S.healthcaresystemmustbere-engineeredtomeettherealityofareducedrevenuestreamasanincreasingnumberofpeopleretireandareinsuredbyMedicare,ratherthantheiremployer’sprivateinsurance.LookingattheprospectofoperatingincreasinglyonwhatarelikelytobefurtherreducedMedicarereimbursementrates,Mackenzie,whoishimselfaphysician,believesthatpartofthesolutionmaybeidentificationofwasteandduplicationintheoverallsystem.Hefeltthatitmightbepossibletoreducecostsbyperhaps20percentthroughre-engineeringandappropriateuseoftechnologythatwillallowconsolidationofprocedures.Forexample,henotedthatasingleradiologistcanremotelyreadx-raystakeninavarietyoflocations.Similarly,ratherthanhavingeachhealthcareprofessionalordermultipleversionsofthesametest,theresultsofonetestcanbesharedthroughtechnology—partofthepromiseoftherecentpushforinte-gratedelectronichealthrecordsandrelatedsystems.

ContinuousCareCommunities:SupportServicesandCustomerRelationshipsLife-care,orcontinuouscareretirementcommunities(CCRC),whichareeffectivelyahybridofhotelandhospi-tal,offertheirownsetofcomplexities.Obviously,ahotel’sclienteleistransient,unlikethoseoflife-carefacilities,andanotherdifferencebetweenthecommunitiesandhotelsisthatthelife-carecommunitieshaveasclientsboththeresi-

Kunle Modupe: one key to working in old facilities is to have an excellent staff with a service-related culture.

Elizabeth Ambrose: Facilities can use technology to share daily moments of their patients with their families, for example by sending photos from mobile devices.

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dentsandtherelativesofthoseresidents.Evenwiththosedifferences,theoperatingprinciplesofbotharesimilar.AsexplainedbyVi’sRandalRichardson,thegoalistobringahospitalityapproachintothehealthcaredomain.Thusthesecommunitieshavebothahospitalitysideandahealthcareside.Mostcritically,residentsexpecttheenvironmentandservicelevelstoremainthesameastheymovefromonelevelofcaretoanother.

Onceagain,astrongculturalapproachisessential,Richardsonsaid.Itischallengingtotranslatehospitalitytoacareenvironment,buttheavailabletoolsarefamiliar.Employeesfeltthattheyweremakingadifferenceinpeople’slives,andtheculturalthemeisservicewithapurpose.Thus,abigsellingpointforthosewhowanttoworkwithViisthattheyhaveagreatandmeaningfulplacetowork,whichstemsfromthethemeof“hospitalityserviceswithapurpose,”asRichardsonputit.Employeesworktounderstandguests’interestsandtohelpthemdoasmuchastheycanduringthedifficulttransitionsofadvancingageandlifechanges.Richardsonsaidthestafffoundhospitalitytrainingtobevaluable.Toensurequalityservice,thecompanyusedqual-ityauditsandmonitoring.Alludingtothemanydifferenttypesoffacilities,Richardsonechoedtheopinionsvoicedbythehospitaloperators:somefacilitiesaresimplyinflex-ible,butthepeopleintheorganizationmakethedifferenceregardlessofthefacility.

CollaborationOpportunitiesAmongSeniorLivingandOtherProvidersCooperationbetweenhospitalsandnearbyCCRCs,othervariationsonseniorliving,orotherhealthfacilitiesen-hancesthehospitalitycapabilitiesofboth.JudyKaufman,directorofspecialpatientservicesforStanfordHospitalandClinics,notedthesharingbetweenherfacilityandthenearbyVilife-carefacility.ThehospitalofferstopservicesfortheViresidents(includingvaletservice),andhospitalemployeesbringeducationalservicestotheresidentsintheirfacility(includingwellnessprograms).

Forlife-carefacilitiesornursinghomes,WilliamSims,managingprincipalofHerbertJ.SimsandCompany,suggestedthatcertainactivitiescanenhanceafacility’sreputation—evenwhenthosefacilitiesareold.Forexample,residentscanbeorganizedtovolunteeratsuchtasksasstuffingenvelopestohelpanadjacentornearbynon-profitorganization,orthefacilitycouldarrangetraveltolocationswhereresidentsandstaffcanvolunteeron-site.Henotedoneorganizationthatenhanceditsreputationusingahospi-talityapproach—organizingatriptoIsraelfor15residentsandtheircaregivers.

HealthcareREIT’sStephanieAndersonpointedtopotentialopportunitiesunderMedicare’spost-acutecarebundlingpilot—notingitspartnerorganizationGenesis

Healthcare,whichprovidespost-hospitalcare,asaninterest-ingmodelthatdeservesfurtherstudy.Andersonsaidthatbyworkingtochangehabitsofpatientsandhavinghospitalsplusotherproviderssuchasskillednursingfacilities(SNFs)worktogether,modelslikethesemaybeabletoreduceread-missionsandimproveoutcomes.

CayugaMedicalCFOJohnRuddagreedthatthishadpotential,butsuggestedthatitisstillunclearexactlywhatwillhappenregardingpayments.Henotedthattheyaretrackingthismatterandagreesthatcollaborationisimpor-tant.CMCisalreadyworkingcloselywithanumberofpost-acuteproviders.Regardingencouragingchangesinhealthbehaviors,henotedthatCMC’sCenterforHealthyLivinghasbeenfocusedontryingtoinfluencelife-stylemodifica-tionandtoofferphysicaltherapyandsportsmedicineattheiroff-sitefacility,knownasIslandHealthandFitness.Thefacilityalsohasphysicianswhocanengagewithpatientsonthe“frontend”andhopefullyinfluencebehaviorstoim-provehealth.Theyalsoprovide“back-end”servicesaswellthatareintegratedwithcardiologists’care.

TheFood-ServiceChallengeForsenior-livingfacilities,excellentfoodserviceiscriti-cal,saidRichardson.Inparticular,theleveloffoodserviceneedstobeconsistentwhenresidentsmovefromonecareleveltoanother,eveniftheirdietarysituationchanges.

CMC’sRuddexplainedthechangehisfacilitymadeinfoodservicewhentheytookapatientsurveythatplacedpatients’satisfactionwithfoodinjustthe10thpercentile.CMCstartedwithbasicfoodindustrypractices:hotfoodwouldbeservedhot,andcoldfood,cold.Theymovedstaffpeopleoutofthekitchenandintothepatientroomsto

Randal Richardson: A critical goal is to bring a hospitality approach into the healthcare domain to ensure consistent service levels in all facilities.

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14 TheCenterforHospitalityResearch•CornellUniversity

HospitalityCanMakeaDifferenceEveninFacilitiesinChallenging,LowIncomeEnvironmentsFoxrothschild’sJenniferSchwartzremindedthegroupthatmanyhospitalswhichoperateinlow-incomeneighborhoodshavenotonlyfacilityproblemsbutalsoissuesaroundfeel-ingsecure—inanalreadyhighstresssituationofamedicalemergencyorillness.

BrianGrubbandJillGuindon-Nasir,bothleadersattheRitz-CarltonLeadershipCenter,explainedthattheyhaveworkedforanumberofyearswithfaith-basedhospitalsservinglowincomeneighborhoods,andtheyhavebeenabletotakeabrokencultureandhelpgetpsychologicalowner-shipandemployeebuy-intomakeasignificanttransforma-tion.Oneinner-cityhospitalthatwaspartofafaith-basedsystem,forinstance,wasreadytoclose.However,eventhoughthiswasanoldfacility,theywereabletoimprovetheiremployeeengagementscorestobethetopoftheentiresystemperGallup’sanalysis.Thehealthsystemalsohadfacilitiesinotherareaswithmodern,well-appointedbuildings—butaftertheirintervention,thisolderfacilityexceededeventhehigh-endfacilities’Gallupscores.Withtheimprovementsinperformance,thesystemdecidednottoclosethefacility,whichisnowmoreviableandcontinuestoservethecommunitywiththeirmission.

Guindon-Nasirsaidthatitiskeytogettheseniorlead-ershiponboard,anddemonstratethattheyreallybelievethattheorganizationcanbethebest,despitehavinganold

Co-chairs Rohit Verma (left) and Brooke Hollis (right) flank keynote speaker Gerard van Grinsven: Additional collaboration between the healthcare and hospitality industries will yield benefits for both.

enhanceservice.Insteadofhavingpatientsfilloutslipsofpapertochooseentrées,thefacilityusedmenusandhadnu-tritionattendantsworkwithpatientstomakefoodchoices.Theresultwasanimprovementinsatisfactiontothe90thpercentileinthespaceof18months.

Stanford’sKaufmansaidherfacilityshiftedtoaroom-serviceapproachthatallowspatientstohavefoodwhentheyactuallyhavetimeorinclinationtoeatit.Notonlydidthatimprovepatientsatisfaction,butitcutdownonfoodwaste.

LynneEddy,anassistantprofessorattheCulinaryInsti-tuteofAmerica,saidthattheCIAhadrecognizedademandforgood,nutritiousfoodinseniorlivingandotherhealth-carefacilities.Asaresult,CIAnowhasaprogramtogivehealthcarechefsthetoolstoapply5-starcuisinetohealth-caremenus.Lynneheadsthateffort.Amongothers,Rich-ardson’sorganizationhaspartneredwiththeCIAintrainingcooksandchefs—andnotedhowimportantthefoodisforresidentsinallacuitylevels.

Co-chairHollisnotedthatplaceslikeGriffinHospitalandotherPlanetree™organizationshavealsoutilizedfoodinnovationstoimprovethepatientexperience.Amongtheirmanyideasaresatellitekitchensthatfamiliescanusetocookonthepatientfloors,andvolunteerswhobakechocolatechipcookies—providingadecidedlyfriendlieraromathanistypicalinmosthospitals.Theseandotherhospitality-typeinnovationshaveledGriffintostrongperformanceandlongwaitlistsforclinicalstaffhiringevenduringtimesofshortage—despitebeingwithin20minutesofYale’shighlyregardedmedicalcenter.

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facilityorotherchallenges.Oneexamplewashavingwell-trainedstaffassignedtohelpwithpatientsandfamiliesintheER.Thishasthepotentialtoimprovecustomersatis-factioneventhoughtheremightbeawaitanddespitethefactthattheenvironmentcanbeintimidating—especiallyinpoorerneighborhoods.Engagedemployeesareabletohelpassistandreassurethepatientandfamily.Inonecaseafamilymemberwrotethehospitaltosaythattheextraeffortstohelpandthelevelofcourtesyfromoneperson,avaletservingtheER,hadmadeasignificantimpactontheirexperience.Notonlywashishelpgreatlyappreciated,butitalsohelpedmakethemconfidentthatthehospitalhadreallydoneallthatitcouldforthefamilymemberunderitscare.

VIPPrograms—OneSizeDoesNotFitAllEchoingthecommentfromCMC’sMackenziearoundVIPprograms,Stanford’sKauffmanlikewisepointedoutthatherfacilitydoesnothaveaspecialdedicatedwingforinterna-tionalorotherhighprofilepatients—althoughsomehos-pitalsdohavesuchprograms.InsteadtheStanfordfacilityhasadecentralizedprogramthatworkswithpatientsintheregularunits,butprovidessomeadditionallevelsofserviceandlimitedamenities.TheyalsoworkwiththeAcademicHealthcareCoalitiontocoordinatecareforpatientswhomightbetravellingtootherlocations.Additionally,theyhavealsoempoweredstafftomakeappropriategestures.Ahousekeepercanofferacomplimentarymassage,forex-ample,eitherfor“servicerecovery”oriftheysensetheneedinaparticularsituation.

KellyAbramson,anadministrativedirectorwhoheadsanumberofprogramsatPennMedicine,agreedthatitisnotjustthefacilitybutthestaffwhomakethedifferenceinahealthcaresetting.WhilePenndoeshavestaffwhocoordinateservices,theimportantthingishavingstaffwhoprovideexcellentservice—thosethatthink“Wowvs.Woe,”assheputit.Abramsonalsopioneeredanarrangementwithalocalhotelorganizationasasortoftransitionalsettingforpatientsnotreadytogohome,butnolongerinneedofthehospitalsetting.Theymayarrangeforhomehealthornurs-ingsupportasneeded.

AsforhospitalsthatdohavespecialVIPwings,therehasbeensomecritiqueofVIPprogramsinthepress.How-ever,thefactisthatmostorganizationsneedtofindwaystoimproverevenue,inthiscasebyoffsettingthelowerreim-bursedpatientsviaattractingpatientswhocaneffectivelyhelpsubsidizetheorganization.Afterall,hospitalsmustbefinanciallyviable.Theoldadage“nomargin,nomission”isafactoflifeformosthospitalstoday.

EngagingClinicalStaffinProcessImprovementTwootherphysicianparticipantsprovidedadditionalclini-calperspectives.SitashDevapatla,aphysicianwhoheadstheNeonatalICUandleadshishospitalmedicalstaff,reportedsignificantimprovementsfromprocesschangesthatac-tivelyengagedthestaff,alongwithaprocessimprovementspecialistadvisor.TheysignificantlyreducedthetimefromidentificationoftheneedforaC-sectiontotheinitiationoftheprocedure,forinstance.Notonlydidthishelpimproveclinicaloutcomes,buttheprojecthashelpedstaffmoraleandgeneratedanincreasedsenseofpride.

KristinaGestuvo,ageriatrician,aMt.SinaiMedicalSchoolfacultymemberandaSloanMHAgraduate,foundthatcreatingapatient-centeredmedicalhomeandworkingtomorefullyengagethevariousdirectandclinicalsupportstaffcanpotentiallymakeimprovementsinbothclinicaloutcomesandpatientandfamilysatisfaction.

FutureDirectionsTherewasaclearsenseofthevalueofthecross-fertilizationofideassharedbetweenhealthcareandhospitality.Partici-pantsunanimouslyagreedthatCornellshouldrepeatandexpandthisRoundtabletocontinueanalyzingtheconver-genceofthehospitalityandhealthcare.Giventhelimitedtimewhichallowedparticipantsonlytoaddresssomepartsofthefield,itwassuggestedthatadditionaltopicsbeaddedinthefuture,withfollow-ondiscussionstoseehowsomeoftheinnovationsandideaswereprogressingattheorganiza-tionsrepresented.n

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16 TheCenterforHospitalityResearch•CornellUniversity

Kelly Abramson Administrative Director, Penn Global, PFS, Penn Passport Hospital of the University of Pennsylvania

Elizabeth Ambrose Founder and Principal Bridges Cornell Heights

Stephanie Anderson Chief Acquisition Officer Health Care REIT

Franklin Becker Professor Cornell College of Human Ecology

Dave Caleca Partner & Senior Director CSCA Capital Advisors

John DeHart CEO and Founder Nurse Next Door

Jan deRoos HVS Professor of Real Estate Finance Cornell School of Hotel Administration

Srisatish Devapatla, MD Physician and President of Medical Staff Cayuga Medical Center

Lynne Eddy Professor and Head of Program on Health Services The Culinary Institute of America

David Eilers VP Business Development Blue Highway, Inc.

Rosie Feinberg Senior Designer SFA Design

Kristina Gestuvo, MD Assistant Professor, Geriatric Medicine Mt Sinai Medical Center, NYC

Rita Ghatak Director, Aging Adult Services, Geriatric Health Stanford University Medical Center

Esther Greenhouse Doctoral Candidate—Certified Aging in Place Specialist Cornell University—Design and Environmental Analysis

Brian Grubb Senior Corporate Director & Senior Corporate Advisor Ritz-Carlton Leadership Center

Jill Guindon-Nasir Vice President, Global Business Development Ritz-Carlton Leadership Center

Meredith Johnson Chief Operating Officer Cleveland Clinic Canada

Judy Kaufman Director of Special Patient Services Stanford Univ. Hospital and Clinics

Rob Mackenzie, MD CEO Cayuga Medical Center

Kunle Modupe Director of Support Services (former Senior Manager at Ritz-Carlton) New York Presbyterian Hospital/Weill-Cornell

Randal Richardson President Vi (formerly Classic Residence by Hyatt)

Stephani Robson Senior Lecturer Cornell School of Hotel Administration

John Rudd Chief Financial Officer and SVP Cayuga Medical Center

Betsy Schermerhorn Director of Marketing and Admissions Kendal at Ithaca (CCRC)

Jennifer Schwartz Partner FoxRothschild LLP

William Sims Managing Principal Herbert J. Sims & Co.

Christy Stone Vice President Health Care REIT

Mary Tabacchi Associate Professor Cornell School of Hotel Administration

John Turner VP Public Relations Cayuga Medical Center

Gerard van Grinsven CEO (former VP at Ritz-Carlton) Henry Ford West Bloomfield Hospital

Beth Xie Director of Marketing Strategy and Sales Enablement eCornell

pArTiCipAnTs

Celebrating 20 Years of Hospitality Research

021992 - 2012

th

ANNIVERSARY

Download our free research at:

www.chr.cornell.edu489 Statler Hall · Ithaca, NY 14853

[email protected] · 607-255-9780

Friends4Hoteliers.com • Berkshire Healthcare • Center for Advanced Retail

Technology • Cleverdis • Complete Seating • Cruise Industry News • DK Shifflet & Associates • ehotelier.com • EyeforTravel • Gerencia de Hoteles & Restaurantes • Global Hospitality Resources • Hospitality Financial and Technology Professionals (HFTP) • hospitalityInside.com • hospitalitynet.

org • Hospitality Technology Magazine • HotelExecutive.com • International CHRIE • International Hotel Conference • International Society of Hospitality Consultants (ISHC) • iPerceptions • JDA Software Group, Inc. • J.D. Power and Associates • The Lodging Conference • Lodging Hospitality • Lodging

Magazine • LRA Worldwide, Inc. • Milestone Internet Marketing • MindFolio • Mindshare Technologies • PhoCusWright Inc. • PKF Hospitality Research • Questex Hospitality Group • Resort and Recreation Magazine • The Resort

Trades • RestaurantEdge.com • Shibata Publishing Co. • Synovate • UniFocus • Vantage Strategy • WageWatch, Inc. • The Wall Street Journal • WIWIH.COM

Senior PartnersASAE Foundation, Carlson Hotels, Hilton Worldwide,

National Restaurant Association, SAS, STR, and Taj Hotels Resorts and Palaces

PartnersDavis & Gilbert LLP, Deloitte & Touche USA LLP, Denihan

Hospitality Group, eCornell & Executive Education, Expedia, Inc., Forbes Travel Guide, Four Seasons Hotels and Resorts, Fox Rothschild LLP, French Quarter Holdings, Inc., HVS, Hyatt Hotels

Corporation, InterContinental Hotels Group, Jumeirah Group, LRP Publications, Maritz, Marriott International, Inc., Marsh’s Hospitality

Practice, McDonald’s USA, newBrandAnalytics, priceline.com, PricewaterhouseCoopers, Proskauer, ReviewPro, Sabre Hospitality Solutions, Sathguru Management Consultants (P) Ltd., Schneider

Electric, Thayer Lodging Group, Thompson Hotels, Travelport, WATG and Wyndham Hotel Group

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CornellHospitalityProceedings•March2012•www.chr.cornell.edu 17

Celebrating 20 Years of Hospitality Research

021992 - 2012

th

ANNIVERSARY

Download our free research at:

www.chr.cornell.edu489 Statler Hall · Ithaca, NY 14853

[email protected] · 607-255-9780

Friends4Hoteliers.com • Berkshire Healthcare • Center for Advanced Retail

Technology • Cleverdis • Complete Seating • Cruise Industry News • DK Shifflet & Associates • ehotelier.com • EyeforTravel • Gerencia de Hoteles & Restaurantes • Global Hospitality Resources • Hospitality Financial and Technology Professionals (HFTP) • hospitalityInside.com • hospitalitynet.

org • Hospitality Technology Magazine • HotelExecutive.com • International CHRIE • International Hotel Conference • International Society of Hospitality Consultants (ISHC) • iPerceptions • JDA Software Group, Inc. • J.D. Power and Associates • The Lodging Conference • Lodging Hospitality • Lodging

Magazine • LRA Worldwide, Inc. • Milestone Internet Marketing • MindFolio • Mindshare Technologies • PhoCusWright Inc. • PKF Hospitality Research • Questex Hospitality Group • Resort and Recreation Magazine • The Resort

Trades • RestaurantEdge.com • Shibata Publishing Co. • Synovate • UniFocus • Vantage Strategy • WageWatch, Inc. • The Wall Street Journal • WIWIH.COM

Senior PartnersASAE Foundation, Carlson Hotels, Hilton Worldwide,

National Restaurant Association, SAS, STR, and Taj Hotels Resorts and Palaces

PartnersDavis & Gilbert LLP, Deloitte & Touche USA LLP, Denihan

Hospitality Group, eCornell & Executive Education, Expedia, Inc., Forbes Travel Guide, Four Seasons Hotels and Resorts, Fox Rothschild LLP, French Quarter Holdings, Inc., HVS, Hyatt Hotels

Corporation, InterContinental Hotels Group, Jumeirah Group, LRP Publications, Maritz, Marriott International, Inc., Marsh’s Hospitality

Practice, McDonald’s USA, newBrandAnalytics, priceline.com, PricewaterhouseCoopers, Proskauer, ReviewPro, Sabre Hospitality Solutions, Sathguru Management Consultants (P) Ltd., Schneider

Electric, Thayer Lodging Group, Thompson Hotels, Travelport, WATG and Wyndham Hotel Group

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18 TheCenterforHospitalityResearch•CornellUniversity

Cornell Hospitality Quarterlyhttp://cqx.sagepub.com/

2012 ReportsVol.12No.6StrategicRevenueManagementandtheRoleofCompetitivePriceShifting,byCathyA.Enz,Ph.D.,LindaCanina,Ph.D.,andBreffniNoone,Ph.D.

Vol.12No.5EmergingMarketingChannelsinHospitality:AGlobalStudyofInternet-EnabledFlashSalesandPrivateSales,byGabrielePiccoli,Ph.D.,andChekitanDev,Ph.D.

Vol.12No.4TheEffectofCorporateCultureandStrategicOrientationonFinancialPerformance:AnAnalysisofSouthKoreanUpscaleandLuxuryHotels,byHyunJeong“Spring”Han,Ph.D.,andRohitVerma,Ph.D.

Vol.12No.3TheRoleofMulti-RestaurantReservationSitesinRestaurantDistributionManagement,bySherylE.Kimes,Ph.D.,andKatherineKies

Vol.12No.2Compendium2012

Vol.12No.12011AnnualReport

2012 ProceedingsVol4.No.1TheHospitalityIndustryConfrontstheGlobalChallengeofSustainability,byEricRicaurte

2012 Industry PerspectivesVol.2No.1TheIntegrityDividend:HowExcellentHospitalityLeadershipDrivesBottom-LineResults,byTonySimons,Ph.D.

2011 ReportsVol.11No.22EnvironmentalManagementCertificationandPerformanceintheHospitalityIndustry:AComparativeAnalysisofISO14001HotelsinSpain,byMaría-del-ValSegarra-Oña,Ph.D.,ÁngelPeiró-Signes,Ph.D.,andRohitVerma,Ph.D.

Vol.11No.21AComparisonofthePerformanceofIndependentandFranchiseHotels:TheFirstTwoYearsofOperation,byCathyA.Enz,Ph.D.,andLindaCanina,Ph.D.

Vol.11No.20RestaurantDailyDeals:Customers’ResponsestoSocialCouponing,bySherylE.Kimes,Ph.D.,andUtpalDholakia,Ph.D.

Vol.11No.19ToGrouponorNottoGroupon:ATourOperator'sDilemma,byChekitanDev,Ph.D.,LauraWinterFalk,Ph.D.,andLaureMougeotStroock

Vol.11No.18NetworkExploitationCapability:MappingtheElectronicMaturityofHospitalityEnterprises,byGabrielePiccoli,Ph.D.,BillCarroll,Ph.D.,andLarryHall

Vol.11No.17TheCurrentStateofOnlineFoodOrderingintheU.S.RestaurantIndustry,bySherylE.Kimes,Ph.D.

Vol.11No.16UnscramblingthePuzzlingMatterofOnlineConsumerRatings:AnExploratoryAnalysis,byPradeepRacherla,Ph.D.,DanielConnolly,Ph.D.,andNatasaChristodoulidou,Ph.D.

Vol.11No.15DesigningaSelf-healingServiceSystem:AnIntegrativeModel,byRobertFord,Ph.D.,andMichaelSturman,Ph.D.

Vol.11No.14ReversingtheGreenBacklash:WhyLargeHospitalityCompaniesShouldWelcomeCrediblyGreenCompetitors,byMichaelGiebelhausen,Ph.D.,andHaeEunHelenChun,Ph.D.

Vol.11No.13DevelopingaSustainabilityMeasurementFrameworkforHotels:TowardanIndustry-wideReportingStructure,byEricRicaurte

Vol.11No.12CreatingValueforWomenBusinessTravelers:FocusingonEmotionalOutcomes,byJudiBrownell,Ph.D.

Vol.11No.11CustomerLoyalty:ANewLookattheBenefitsofImprovingSegmentationEffortswithRewardsPrograms,byClayVoorhees,Ph.D.,MichaelMcCall,Ph.D.,andRogerCalantone,Ph.D.

Vol.11No.10CustomerPerceptionsofElectronicFoodOrdering,bySherylE.Kimes,Ph.D.

Vol.11No.92011TravelIndustryBenchmarking:StatusofSeniorDestinationandLodgingMarketingExecutives,byRohitVerma,Ph.D.,andKenMcGill

Vol11No8Search,OTAs,andOnlineBooking:AnExpandedAnalysisoftheBillboardEffect,byChrisAndersonPh.D.

Vol.11No.7Online,Mobile,andTextFoodOrderingintheU.S.RestaurantIndustry,bySherylE.Kimes,Ph.D.,andPhilippF.Laqué

Cornell Center for Hospitality Research

Publication Indexwww.chr.cornell.edu

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Vol.11No.5TheImpactofTerrorismandEconomicShocksonU.S.Hotels,byCathyA.Enz,RenátaKosová,andMarkLomannoVol.11No.4ImplementingHumanResourceInnovations:ThreeSuccessStoriesfromtheServiceIndustry,byJustinSunandKateWalsh,Ph.D.

Vol.11No.3Compendium2011

Vol.11No.2PositioningaPlace:DevelopingaCompellingDestinationBrand,byRobertJ.Kwortnik,Ph.D.,andEthanHawkes,M.B.A.

Vol.11No.1TheImpactofHealthInsuranceonEmployeeJobAnxiety,WithdrawalBehaviors,andTaskPerformance,bySeanWay,Ph.D.,BillCarroll,Ph.D.,AlexSusskind,Ph.D.,andJoeC.Y.Leng

2011 Hospitality ToolsVol.2No.4ServiceSimulatorv1.19.0,byGaryM.Thompson,Ph.D.

Vol.2No.3TheHotelCompetitorAnalysisTool(H-CAT):AStrategicToolforManagers,byCathyA.Enz,Ph.D.,andGaryM.Thompson,Ph.D.

Vol.2No.2HotelValuationSoftware,Version3,byStephenRushmoreandJanA.deRoos,Ph.D.

Vol.1.No.7MegaTips2:TwentyTestedTechniquesforIncreasingYourTips,byMichaelLynn

2011 Industry PerspectivesVol.2No.1TheGameHasChanged:ANewParadigmforStakeholderEngagement,byMaryBethMcEuen

2011 ProceedingsVol.3No.7ImprovingtheGuestExperiencethroughServiceInnovation:IdeasandPrinciplesfortheHospitalityIndustry,by:CathyA.Enz,Ph.D.

Vol.3No.6FreshThinkingabouttheBox,by:ChekitanS.Dev,Ph.D.,andGlennWithiam

Vol3,No.5BuildingBrandsintheInternetAge:Analytics,Loyalty,andCommunication,byGlennWithiam

Vol.3,No.4BraveNewWorld:OnlineHotelDistribution,byGlennWithiam

Vol.3,No.3SocialMediaandtheHospitalityIndustry:HoldingtheTigerbytheTail,byGlennWithiam

Vol.3No.2TheChallengeofHotelandRestaurantSustainability:FindingProfitin“BeingGreen,”byGlennWithiam

Vol.3No.1CautiousOptimism:CHRSExaminesHospitalityIndustryTrends,byGlennWithiam

2010 ReportsVol.10No.18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisions,byLauraMcCarthy,DebraStock,andRohitVerma,Ph.D.

Vol.10No.17PublicorPrivate?TheHospitalityInvestmentDecision,byQingzhongMa,Ph.D.andAthenaWeiZhang,Ph.D.

Vol.10No.16BestPracticesinSearchEngineMarketingandOptimization:TheCaseoftheSt.JamesHotel,byGregBodenlcos,VictorBogert,DanGordon,CarterHearne,andChrisK.Anderson,Ph.D.

Vol.10No.15TheImpactofPrix Fixe MenuPriceFormatsonGuests’DealPerception,byShuoWangandMichaelLynn,Ph.D.

Vol.10No.14TheFutureofHotelRevenueManagement,bySherylKimes,Ph.D.

Vol.10,No.13MakingtheMostofPriceline’sName-Your-Own-PriceChannel,byChrisAnderson,Ph.D.,andRadiumYan,D.B.A

Vol.10,No.12CasesinInnovativePracticesinHospitalityandRelatedServices,Set4,byCathyA.Enz,Ph.D.,RohitVerma,Ph.D.,KateWalsh,Ph.D.SherylE.Kimes,Ph.D.,andJudyA.Siguaw,D.B.A

Vol.10,No.11Who’sNext?AnAnalysisofLodgingIndustryAcquisitions,byQingzhongMa,Ph.D.andPengLiu,Ph.D.

The Executive Path Hospitality Leadership Through Learning

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