The U.S. Healthcare System is currently wasting an estimated $765 Billion (23% of what is spent) per year due to inefficient operations! Surprisingly, the majority of this waste is not being generated by pricing failures and supply chain issues, but through workflow and labor management deficiencies.
Category: Hospital Productivity
Embracing Accountability
When the ALTIUS team has an initial conversation regarding performance improvement with a hospital’s senior leaders, they are often unsure of what led to their current financial challenges. The reality is that it is never one decision, one hire, or one situation that deteriorates an organization’s bottom line. It can be the choices made day-to-day within the silos of the organizational structure, delaying difficult decisions, and/or a lack of accountability that leads to the overall decline.
The Fear of Productivity
Any healthcare consultant that focuses on productivity will tell you the mixed reactions received when sharing that you have been engaged to improve performance. Why are we, as an industry, conditioned to fear a word that brings value, accountability, and increased efficiencies to hospitals and health systems? Historically speaking, productivity was synonymously linked to a reduction in force or layoff. It is no wonder that just the mention of it could send panic across an organization, especially if previous experiences have left staff feeling lost, defeated, and defensive.
The Financial Impacts of COVID-19
The financial impacts of COVID-19 are unprecedented, crippling the operations of most healthcare organizations and leaving leaders to answer serious questions about strategies for stabilization. One of the quickest, most effective solutions is through workforce optimization. Improving performance by enhancing productivity and implementing processes to control labor costs will help hospitals and health systems to rebound in a systematic way that not only meets patient demand but ensures the right resources are in place to provide the best care.