Multicampus health system achieves $48 million improvement in operations
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Multicampus health system achieves $48 million improvement in operations

​​The challenge
A multibillion dollar teaching and tertiary health system with multiple campuses and over 1,000 providers was experiencing a significant decline in margins while labor FTEs throughout the organization were increasing nonproportionally to patient volumes. The health system had engaged a large national consulting firm to perform labor productivity just three years prior, and no improvement was achieved through the process, leaving management doubtful of any successful new consulting implementation. 

The solution
We were engaged to perform a test-case for 25 labor cost centers at the main campus. Within a 100-day period, a 200+ FTE reduction was identified and agreed to by affected department managers. Subsequently, we performed a comprehensive workforce management analysis and process improvement engagement for six hospitals, clinic operations, and the general corporate services of the organization. The process improvement initiative included several clinical departments. Of note, the respiratory therapy department had trouble reaching an ambitious labor productivity benchmark. We immediately identified an issue in the ability for respiratory therapists to access patients. Our team created a plan for improved technology to inform therapists of patient availability, leading to productive patient visits and an increased workload. The improved process eliminated wasted time and enhanced communication. 

The benefit
The organization achieved real reduction in over 800 FTEs in the first 15 months with no reduction in force required. Over the next 18 months, we identified additional process improvement initiatives that led to the reduction of another 200 FTEs. Overall, the system obtained a $48 million improvement in operations.

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Tony Colarossi