Case Study

A Multi-Disciplinary Team Effort Achieves $30-Million in Hospital Improvements


A 105-bed California community hospital that is part of a larger health system was going through its performance improvement initiative. Executives were not happy with the results achieved by the healthcare consulting firms they had previously worked with. HFS’s Management and Operations practice was brought in to help the hospital achieve labor and non-labor cost reductions.


When the engagement began In March 2014 hospital executives expressed an urgent need for quick results. They needed to reach a specific financial goal within two months to demonstrate to the system leadership that they had a plan to address their financial needs. The HFS team met the tight deadline challenge. By working quickly and efficiently, meaningful improvements were achieved, exceeding the ultimate goal.


The engagement was initially focused on labor cost reductions, along with some reductions in the non-labor category. However, the team identified significant reductions in the non-labor category, expanding the engagement to focus on both labor and non-labor categories.

The engagement grew further when hospital executives, pleased with HFS’s results, requested that the firm handle its revenue cycle. The Management and Operations practice brought in HFS’s Revenue Cycle team, including an on-site project manager to provide ongoing support.

With the changes in the revenue cycle department, HFS’s Executive Search and Interim Management practice area was called in to assist with placing an interim revenue cycle director.

The engagement continues today with HFS currently providing patient throughput work. There is also a strong possibility that the firm will be hired to provide cost improvement projects at the hospital’s main campus.


The initial target for total labor, non-labor, and revenue cycle improvements was approximately $10 million. To date, HFS has achieved $30 million in total improvements, well exceeding the original goal. The success is due to the team’s collaborative partnership with the hospital and with hospital executives’ willingness to make changes in several areas.

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