Running a hospital or health system in today’s environment is extremely challenging and requires excellence in many critical areas. Maintaining last year’s performance is frequently not enough. We help our clients to challenge their historical performance, then to exceed their previous performance.
One of the central challenges all hospitals and health systems face is how to provide world-class care while managing their scarce resources.
To thrive in the current healthcare environment requires successfully:
- Reducing non-labor costs
- Reducing or managing labor cost
- Managing patient status determination
- Achieving clinical variation reduction
- Managing physician services
We are helping our clients to succeed with each of these. We can help you improve your operations and margin too.
With low operating margins and limited resources, providers are feeling pressure to reduce and manage their costs. Reducing non-labor costs is more complicated than just seeking lower costs for supplies and services. We help our clients focus on maintaining the same service levels while reducing costs with purchased services, HR benefits, laboratory, pharmacy, medical/surgical supplies and physician preference items.
Length of Stay Management
Higher lengths of stay have become an issue for many providers. To achieve length of stay reductions, care management, patient flow, and care variation must be addressed. With the identification of operational and clinical constraints within all hospital functions and understanding payor contracts, our team assists clients in reducing costs attributable to excessive lengths of stay.
Labor is typically the largest expense for a hospital. It is critical for providers to keep their personnel costs in control and the staff properly utilized and productive. In addition to providing benchmarking services, we work with department leaders to attain the established targets.
Corporate overhead is becoming a larger component of an organization’s cost structure. Truly gaining efficiency from the corporate function is key for systems to be successful.
Service Line Reconfiguration
As hospitals continue to merge, affiliate, and associate themselves with other providers, they find themselves operating duplicative service lines. We help our clients streamline service offerings across clinical departments and support areas.
Many hospitals are 340B Program enrollees which allows them to purchase pharmaceuticals at significantly discounted prices for outpatients. Many enrolled hospitals can enhance their mission by expanding how they manage their 340B participation.
Clinical Variation Reduction
Standardized patient care aligned with evidence-based practice to ensure safety and high quality outcomes is a critical component of the mission of all providers. We help our clients reduce variation in their care delivery by working with our client physicians, clinicians, and other allied health professionals to standardize the delivery of care and establishing defined and standardized clinical practices.
Ensuring the effectiveness of the Care Management role including care coordination, utilization management, case management, and social work is important in today’s healthcare environment. We help our clients bridge patient care and performance improvement needs.
Optimizing the patient status determination process and minimizing observation patient length of stay is an increasingly complicated process for hospitals. Since the implementation of the two midnight rule by CMS, hospitals have struggled with climbing observation rates. With inpatient payment levels being significantly greater than payments for an observation stay, more appropriate conversions to inpatient status can result in significant benefit for a hospital system.
Physician practices are a large component of the cost structure for most providers. We understand the physician practice value drivers and help our clients to develop plans for growth and profitability while maintaining or increasing patient satisfaction and quality of care.