Continuous Healthcare Cost Improvement

StrataJazz is an automated analytics solution that not only identifies savings opportunities in areas such as quality and utilization variation and staffing, but more importantly, provides clinical and operational workflows to drive improvement.


Health systems across the country are looking for better ways to collaborate with clinicians on quality improvement and cost reduction. Finance leaders in particular recognize the critical importance of fully engaging clinical leaders to help their organizations to move towards value-based payment models. They also recognize that their goals of reducing hospital costs while maintaining quality must become a continuous effort, not just a one-time initiative.

With StrataJazz, the analytics required to find true hospital and healthcare cost savings is automated for you. StrataJazz identifies variances in quality, utilization and staffing that represent significant savings opportunities and then provides clinical and operational workflows so you can drive improvements, track results and cultivate accountability.

StrataJazz provides data on the cost savings opportunities, cost reduction targets, performance improvement strategy, anticipated savings and tracks progress via a dashboard that enables users to drill into each cost and quality improvement initiative. This data feeds back to other StrataJazz modules so you can adjust forecasts and budgets accordingly.

To help organizations achieve this, Strata has partnered with Yale New Haven Health System to embed their clinically-proven Quality Variation Indicator (QVI) methodology into StrataJazz (see more below).

Utilization Variation

StrataJazz reduces the financial impact associated with disparities in care delivery by pinpointing variances such as supply usage, length of stay and ancillary services usage that are negatively affecting your cost reduction initiatives.

  • Gain Buy-In
    Leverage internal cost accounting data to gain buy-in for cost savings opportunities from those who actually control expenses.
  • Isolate the Root Cause of Variance
    Identify variances at the service line level (i.e. orthopedics), in the subset of services (i.e. knee implants) and at the physician level (i.e. specific surgeon) to promote performance improvement accountability.
  • Save Time
    Spend less time crunching numbers and more time working with physicians and clinical leaders to improve care practices.

Staffing to Demand

StrataJazz identifies staffing misalignments and quantifies labor reduction opportunities so you can make the most informed and cost-effective decisions without impacting patient care.

  • Adjust Staffing to Changes in Volume
    Quickly determine if department managers are above or below the staffing per unit of service goals for their specific cost centers.
  • Bridge the Communication Gap
    Promote meaningful conversations between finance, clinicians and operations by emphasizing quality and value, not just cost.
  • Drive True Change
    Integrated data such as targeted worked hours per unit of service, as well as budgeted and actual worked hours allow department managers access to actual vs needed staffing levels on an hourly basis.

Quality Variation

StrataJazz leverages Quality Variation Indicators to help hospitals identify the financial impact of adverse events.  This allows hospitals to review clinical and financial outcomes data together and understand the cost and margin impact to the hospital.  

  • Goal Alignment
    Identify savings opportunities associated with the reduction of adverse events by combining clinical outcomes and cost data together.  This allows clinical and financial leaders to create common goals for reducing costs, clinical variation, and most importantly, improving patient care.
  • Pinpoint Areas of Opportunity
    Review Quality Variation Indicators at the payer, entity, specialty and physician level to identify where clinical improvements will have the largest patient impact.
  • Faster Outcomes Data and Automated Results Tracking
    Spend less time querying your data and manipulating spreadsheets to understand your clinical outcomes data.  Set your goal and StrataJazz will automatically report clinical outcomes and associated cost savings monthly.

Healthcare systems and facilities throughout the U.S. today are seeking the best ways to work with physicians on quality control and cost reduction. Health facility financial officers and clinicians are beginning to collaborate on efforts to enable their hospitals or healthcare centers to embrace payment models that are based on value. Financial experts and medical staff in hospital systems now realize that their ideals of cutting overall facility costs while sustaining top quality services must be a continuous process rather than a short-term initiative.

It is essential for this healthcare cost improvement assessment team to note all important variances at: (1) the service line strata (for example, cardiology), (2) the sub-category of patient services (open heart surgery) and the clinician level (certain surgeon) to strengthen accurate accountability of performance betterment. Only after this comprehensive assessment and analysis can this astute team of hospital or healthcare center financial officers, management and clinicians determine the best measures to initiate for effective healthcare cost improvements.

Leading executive officers, hospital management and attending clinicians must determine irregularities in quality levels of resource utilization and staffing performance. They must identify specific opportunities for cost savings. In addition, this team must structure medical and operational workflows that automatically drive degrees of betterment, tracking all results to strengthen accountability. Additional financial specialists may be consulted to lend their expertise on opportunities for cost savings and cost reduction goals. Performance enhancement techniques and initiatives will then be explored and initiated, if approved by this team. Informed quality control forecasts can lead to effective budgetary adjustments.

Detailed analysis of cost savings, performance enhancements and other focal points for improvement can then be applied to other areas to examine and assess for best methods of initiating quality performance, financial savings and operational profits for healthcare programs and facilities. The highly trained and knowledgeable team of hospital administrators, management and clinicians will combine their expertise to assess and evaluate the financial impact of weaknesses in the facilities provided patient care. Varied degrees of supply demand, duration of patients’ hospital stays and strength of all hospital or healthcare center support services will be analyzed carefully for cost-cutting opportunities.