Enabling a Safety Net Hospital to Continue Fulfilling Its Mission
CHALLENGE
A medium-sized community-based academic medical center was struggling with a facility renewal project, while re-imbursements, profits and market share were declining. The client was struggling to determine how to re-align the care delivery system and models of care to more appropriately align with the community needs. They also sought to determine what operational and care model changes might be required to streamline the current care delivery process and to develop care models and functional services to be incorporated into the facility renewal project. The hospital, a safety net facility in the truest sense of the words, need to make profound changes in order to continue fulfilling its mission to care for those in need without experiencing financial catastrophe.
75+ stakeholder interviews
Baseline strategy validation
Operational analysis / time-motion studies
Clinical functionality assessment
Patient consumer experiential analysis
Peer benchmarking
Asset inventory
Facility condition assessment
Co-creation sessions to explore tomorrow’s healthcare
Customized demand projections
Site of service planning
Key room forecast
Space programming
APPROACH
The master planning process commenced with a system-wide review of the organizational performance, identifying areas where current operational practices and service delivery models did not align with best practices or the needs of the community. Several operational and other performance metrics did not align with current best practices, peer benchmarks and / or the needs of the community. The initial study revealed several operational and functional care model changes which could be implemented by the client to reduce operational expenses and future capital costs.
RESULTS
The master planning process proved to be wildly successful. Recommended operational changes were implemented bringing the organizations days of cash on hand back into a safe range. The asset inventory analysis overlaid with the client’s strategic plan and operational opportunities identified a number of high-cost leased spaces as well as buildings that no longer served their intended purpose that would be appropriate to divest.
The master plan set the tone for the construction of an ambulatory surgery center on the campus, bringing with it an increase in surgical volumes and an operational model yielding better overall financial performance.
$3M
reduction in annual operating costs by opening a dedicated Clinical Decision Unit
$700K
reduction in annual operating costs through active utilization management in the ED
85%
reduction in direct costs per patient via opening of walk-in clinic adjacent to the ED to low-acuity patients