Background
One of the most respected hospital teaching institutions in the country, with more than 12,000 cases and 38,000 case hours budgeted per year, faced lower net income from flat revenues and increasing costs. The organization had an urgent need for better financial performance while maintaining a very high level of patient care in its specialty areas.
Solution
Element Consulting started with a bottom-line analysis of the organization to identify specific opportunities to lower costs and increase revenue. The results suggested that, with the right approach, a 10% increase in revenue and 8% ongoing reduction in expenses could be reached. Our consultants capitalized on opportunities that would yield the greatest estimated benefits and returns. To that end, they created Bottom-line Teams of client employees led by Element staff. These teams defined goals and re-engineered or outsourced costly processes, reducing or eliminating many internal expenses.
Results
Our action plan significantly increased our client’s financial performance while maintaining the highest level of patient care. To ensure this, we established clear, repeatable processes that our client’s staff could follow for ongoing success. We achieved our goal of 10% increase in revenue and exceeded 8% reduction in expenses.