Custom service meets the clinical needs of the residents. Standard systems help efficiency and financial performance. Makes sense.
University of South Florida researchers issued an interesting study. Kong is the principal investigator for the study, “Service Chains’ Operational Strategies: Standardization or Customization? Evidence from the Nursing Home Industry.” The Manufacturing & Service Operations Management published the findings.
The USF study looked at how much nursing home chains should standardize their facilities in three areas: 1. the percentage of Medicaid residents; 2. service offerings such as a special care unit, and 3. the staffing ratio.
The comprehensive study looked at years of U.S. nursing home data and came away with three main findings:
1. Nursing home that customize service delivery and standardize customer mix see improved financial performance.
2. A standardized customer mix leads to better clinical outcomes.
3. Chains that customize service delivery tend to experience increased resident welfare.
Research shows that standard systems increase efficiency, brand consistency, reduced costs, and less waste. Customizing services is positively linked with service quality, customer satisfaction, and loyalty.
Nursing home chains that customize service delivery and standardize customer mix tend to see an improved financial performance, while nursing home chains that standardize their customer mix tend to have better clinical outcomes.