It’s a new era in healthcare. Hospitals and healthcare systems are racing to regain profit margins while meeting the high expectations of today’s patients. Moving beyond patient meals, healthcare foodservice is a key part of this transformation.
Paula Keller, Founding Principal of KESTGO, a healthcare support services consulting firm, and Daniel J. Kodner, CEO of healthcare amenities company HHP, discuss the challenges and opportunities facing hospital foodservice executives today. Paula and Dan partner closely with hospitals across the country on their respective areas of expertise.
Paula: Staffing is the biggest challenge across the sector. Healthcare is slowly recovering from margin compression led by rising labor costs. Recruiting and retaining qualified employees is a persistent problem, and then you add in budget constraints. It makes maintaining quality of service even harder.
Dan: We’re seeing a lot of tradeoffs right now. Hospitals that are self-op are stretched too thin to effectively manage the demands of both inpatient and retail, so retail gets deprioritized. And hospitals with third-party foodservice management partners are so focused on cost that hospitality and differentiation fall to the wayside.
Paula: Yes, and then you’re potentially creating satisfaction issues. With patient satisfaction it’s all about meeting diverse dietary needs flawlessly, and on the visitor side, it’s about making food options surprisingly good instead of underwhelming. Achieving strong satisfaction requires a shift in mindset from foodservice as a cost center to foodservice as a revenue driver.
Dan: Going back to your first point, it’s not just patient and visitor satisfaction – it’s also employee satisfaction. Food is never going to trump factors like pay, flexibility or administrative burden, but it is a way to make each shift a little better. Our healthcare partners are looking for creative ways to show employees they’re listening and actively improving their working environment, which can mean everything from upgrading the coffee onsite to redesigning clinician lounges.
Paula: As support services consultants, we recommend that our clients look at the relationships between challenges.
For example, we’ve seen a surge in flexible staffing models in hospital support services– utilizing part-time or per diem staff to fill gaps. Or leveraging partners on non-clinical services so hospitals can use their in-house staff on the most critical operations.
But this brings us back to the tradeoff on cost and quality. How do you balance budget and satisfaction?
Dan: That’s right. It can seem impossible to balance everything. It helps if you have strong relationships with vendors who can mitigate challenges and enhance services, especially in retail foodservice.
Paula: The other area where we continue to see big opportunity is to adopt technology at a faster rate.
Dan: It’s promising to see how many point solutions have not only become available but continue to improve.
Paula: Yes, technologies that facilitate inventory management, meal ordering, and self-service are all options – and they lower the labor mandate. Hospitals must consider these investments as part of their long-term strategy.
Dan: Our team spends a lot of time evaluating what’s out there. Smart fridges, self-checkout, vending, mobile pickup – really anything that can solve for 24/7 access and the time constraints employees have.
Specifically, we’ve been having our restaurant partners stock smart fridges on the campuses where they operate, and our in-house gift shop brand, Hydra Health, is leveraging technology to deliver low-labor models.
Paula: Hybrid solutions feel like an important piece of how the foodservice landscape will look in the future. It’s an innovative way to get closer to finding that delicate balance of cost and satisfaction.
About Kestgo
Kestgo is a leading healthcare consulting firm specializing in operational efficiency and workforce management for hospital support services. Our people-first approach has helped over 175 hospitals and 50+ health systems discover cost savings while improving patient, employee, and visitor satisfaction. Visit us at Kestgo.com
About HHP
HHP is a healthcare amenities company that puts employees, patients and visitors first. Whether it’s through locally roasted coffee, a delicious meal, or a thoughtful gift, HHP brings a human touch to healthcare settings. Our mission is to make healthcare more hospitable for all. HHP has been partnering with health systems, hospitals and academic medical centers across the country since 2017. Visit us at hhpgp.com.
