Learn how production companies can help give hospital revenue a boost.
What’s one way for a hospital to bring in some extra revenue? The big screen. Hospitals can turn to film productions to rake in some extra cash for their organization, and it may be worth it for CFOs to look in to.
When health systems accommodate filming requests, they can charge a filming fee, which may be beneficial in today’s healthcare climate as it battles rising costs and inflation.
A Viable Revenue Boost?
So what goes into this type of arrangement? Set needs will vary based on the production, but they may take over small wings of a hospital or entire unused floors. Often, filming inside an actual hospital or health system is cheaper for production companies than building an entire set and they’re grateful for the space. Without adequate space though, film productions won’t be a feasible option for a health system.
Health systems will also have to consider how long a production company may be there. Filming can vary, from one day to multiple months. Consider how long the organization can or wants to host the film crew. In most cases, productions are grateful to be filming in a real hospital. Crew are often happy to be surrounded by professional health providers who can attest to whether medical equipment props are set up correctly or provide care if there’s an injury on set.
The Sanford Aberdeen Medical Center turned to filming earlier this year, where a crew spent about 50 hours over the span of five days shooting the movie “Thread Bound.” The crew was able to take over a small wing on the third floor that wasn’t being used due to lower patient numbers.
“Seeing the filmmaker’s excitement at the beauty of our facility and the staff willingness to participate in the creation of it has been really fun,” said lead community programs specialist at Sanford Aberdeen Bea Smith.
Next is negotiation. Warner Bros. isn’t going to need the same rate as an independent film company. Other health systems have charged upwards of $2,000 a day for use of their facility, which can quickly add up over multiple days/weeks.
Health systems have said negotiatings with production companies is easy, but the process will vary based on the company.
Hosting a production company can be a potentially quick revenue booster for health systems and might provide the financial wiggle room CFOs are looking for.
Things To Consider
If a health system is looking to work with a production company, patient authorization is vital. Without it, the system’s reputation could be negatively affected, or susceptible to lawsuits and fines.
Health systems must ensure film crews adhere to facility standards and patient confidentiality protocols, as there have been pricey lawsuits in the past, sometimes costing health systems hundreds of thousands.
Another aspect to factor into this decision is the patient’s experience. Typically, patients don’t want to be disturbed by, say, fake gunshots down the hall. Consider the type of production that will be filming and how disruptive it could be to patients.
Lastly, consider the production company’s schedule. These arrangements are often sporadic, and film crews move in and out of the facility throughout their time there. Flexibility will be another important aspect to consider.
Marie DeFreitas is the finance editor for HealthLeaders.
KEY TAKEAWAYS
Hospitals and health systems could find a little revenue boost from film production
CFOs should consider whether filming would be beneficial for their health system after weighing the pros and cons
Film productions and health systems often have a great experience when they work together