Focus on Cost Reduction Drives Accountability for $2M in Savings
Maintaining Cost Savings Momentum
Almost all health systems are trying to reduce the cost of care, yet less than 20% hit their targets. While there are many contributing factors, one core issue is that organizations lack the ability to accurately track the results of their projects and programs. Moreover, many lack governance structure that promotes accountability. Health systems spend significant time meeting about and analyzing data for each cost reduction opportunity. Unfortunately, 30-70% of projects get delayed, scaled back, or simply lose steam. The results: no bottom-line impact.
A medium-sized health system saw significant pressure on their net revenue and margin from CMS reimbursement changes. After years of stable financial performance, this organization did not have a strong process for identifying and validating opportunities no driving ideas to action.