“It has been a great pleasure and privilege for me to work with HFS. They are one of the best consultants we have.”
–Office of Statewide Health Planning and Development (OSHPD)
Access to Care Section Chief, Konder Chung Healthcare Workforce Development Division
From 2008 through 2011, a community hospital in California experienced rapid growth in volumes and staffed up accordingly. In 2012, it added 160+ FTEs in anticipation of continued growth and to address the implementation of CPOE. Unfortunately, the volume growth failed to materialize, which resulted in a $19M decrease in its bottom line, compared to the previous year.
To address this severe financial situation, the hospital engaged HFS to assist in executing a major performance improvement initiative. A business imperative of $11M in net annualized improvement (expense reduction and/or revenue enhancement) was identified for 2013.
Achieve $11M in net annualized improvement (expense reductions and/or revenue enhancement) for 2013. HFS was engaged to address the labor cost reduction portion of this $11M goal.
Over a six-month time period, a comprehensive three-phase approach was implemented to improve the hospital’s performance in labor productivity management and cost reductions.
Establish project structure including steering committee, work groups, PMO, develop internal communications plan and HR plans. Work with VPs and department managers to develop improvement plans to meet targets. Hypothesis-based problem solving, data analysis and modeling.
Action plan development including process redesign, new staffing models, sequencing, investments and training. Coordination with HR, measurement and tracking, managing “backsliding,” accountability.
The client identified and implemented approximately $9M in annual labor cost reductions exceeding the goal of $8.6M.