Internal Cost Savings Process Pays Off with $5M in Identified Opportunities
Difficult to Maintain Energy and Cross-Functional Participation for Cost Reduction Targets
Many healthcare organizations rely on outsourced consultants to help them identify cost savings initiatives. During and especially following those engagements these organizations often struggle to maintain the internal, cross-functional participation and energy required to achieve cost reduction targets. These efforts slow over time, resulting in missed opportunities to achieve true savings for the organization.
After several years of successful engagements with seven of the top 10 firms, this non-profit health system began experiencing “consultant fatigue.” As a result of working closely with these outside consultants, internal teams lacked the governance and capacity to drive those cost savings goals on their own. The organization instead needed to create structure and accountability processes to ensure success of cost improvement projects driven by their teams.