Flexibility and entrepreneurial thinking are musts for self-operated health-care foodservice operators.
In addition to the economic vagaries with which all of foodservice wrestles, self-operated health-care foodservice operators have been contending with HMO-imposed revenue constraints. The segment's entrepreneurial responses have been numerous, ranging from expansion of room service, point-of-service carts and food-court dining arrangements to establishing shared-service agreements among facilities and converting to centralized food preparation.
Rather than cut services to meet the reduced budgets, many who work within health-care foodservice instead opt to develop new business strategies. Shared-service agreements with sister facilities, offering room service and upgrading menus to boost participation are among the changes operators are making.
Properly managed, the massive production capabilities of a central kitchen cook up plenty of opportunities. At Continuum Health Partners in New York, a consortium of 10 medical facilities, a central kitchen prepares the 12,000 meals served daily.
Extra capacity allows Continuum Director of Foodservice Barry Schlossberg to provide foodservice to hospitals outside the Continuum umbrella. The latest to sign on is Manhattan's North General Hospital. Continuum gains management income and leadership opportunities for managers; North General says it has realized a 15% drop in foodservice costs while its patients get broader menu choices. 'Delivering meals in bulk is what we do best,' says Schlossberg.
Many foodservice operators find that properly organized room-service operations can reduce costs, food waste and inventor, while pleasing staff and patients. Via Christi Health System, a 2,400-bed system in Wichita, Kan., is integrating room-service operations with its oncology and pediatrics departments and already has seen patient-satisfaction scores rise. Covenant Hospital in Saginaw, Mich., and St. Anthony Hospital-Centura Health in Denver have completed the transition to room service.
Improving food quality and variety top the must-do lists for many operators. At Bergen Regional Medical Center, a 1,172-bed facility in Paramus, N.J., Executive Chef Anthony Mongiello and his team survey patients and medical staff and conduct regular resident council meetings to gather menu feedback. Findings are incorporated into a main four-week-cycle menu that includes such favorites as crab cakes, tuna fajita wraps, honey-mustard chicken and pasta primavera.
'We're taking a unit-by-unit approach,' says Barry Kriesberg, Bergen's vice president of facilities and support services. 'The psychiatric ward alone has five different menus. A year ago [before the hospital became self-operated], all patients [selected from] the same menu.
Behind-the-scenes efficiencies keep costs down. Trayline assembly times were cut by 40 minutes per meal period after time studies identified key people to work critical points. Ensuring all food was in place before starting assembly eliminated missing components that used to cause line stoppages.
Bergen's menus are used by eight nursing-home facilities, operated by the same parent company, iCare Management in Englewood, Col.
CAPSULE: HEALTH CARE
* 2001 segment sales [1]: $12.437 billion
* Nominal growth ('00-'01) [1]: 0.7%
* Share of total foodservice market [1]: 3%
* Share of noncommercial market [1]: 13%
* Business trends: Centralized food production; stronger retail focus; room service; carryout; online purchasing.
* Key issues: Hospital mergers; multidepartment management; labor shortages; budget cutbacks; growing long-term-care population.
Source: (1) Technomic Inc.
