CHICAGO, Feb. 28, 2019 /PRNewswire/ -- While health systems recognize the importance of managing costs, most have concentrated on traditional performance improvement initiatives, including revenue cycle enhancements, group purchasing organization-facilitated unit price discounts on supply costs, and reduced labor costs through operational benchmarking and other performance management tools.
Although additional savings can often be achieved through renewed efforts in these areas, accelerating pressures on expense management and capital requirements are threatening to outpace most organizations' ability to manage performance. Today The Chartis Group released a paper, "Beating the Financial Squeeze: How to Drive Performance Transformation in Your Health System" that provides a fundamentally different approach to margin improvement.
Rob Gamble, a Director with The Chartis Group and co-author of the paper stated, "Providers seeking to improve margins must directly address clinical care delivery and the associated clinical processes, within an operating environment organized to meet the changing needs of healthcare consumers. This means tackling the more complex, difficult initiatives, such as clinical variation, service rationalization and clinician productivity, as well as addressing organizational alignment and cultural change management to achieve sustainable results."
The paper outlines six inter-related operating dimensions that will truly transform performance and achieve next-level impact on the cost of care delivery and operating margin. These dimensions of transformational performance include:
- Operational Expense Management – Core functions, roles and processes associated with delivering care and services to patients (unit costs)
- Clinical Cost Management – Costs of care delivery associated with clinical decision making (# of units)
- Provider Enterprise Management – Optimal utilization of providers to support the patient and physician experience.
- Revenue Cycle Optimization Management – Optimizing roles and processes to collect all of the revenue associated with services provided.
- Growth and Revenue Optimization – Unlocking capacity and back filling with strategic volume and revenue growth.
- Informatics and Technology - Optimizing expenses while also maximizing the utilization of existing and new systems to support goals
Pamela Damsky, a Director for The Chartis Group and a co-author of the paper stated, "Achieving next-level improvement requires extraordinary organizational leadership and commitment, but the potential results provide lasting impact on the cost of care delivery and support the generation of capital required to fund an organization's growth and aspirations well into the future."
About The Chartis Group
The Chartis Group (Chartis) provides comprehensive advisory services and analytics to the healthcare industry. With an unparalleled depth of expertise in strategic planning, performance excellence, informatics and technology, and health analytics, Chartis helps leading academic medical centers, integrated delivery networks, children's hospitals and healthcare service organizations achieve transformative results. Chartis has offices in Atlanta, Boston, Chicago, New York, Minneapolis, Portland and San Francisco. For more information, visit www.chartis.com.
SOURCE The Chartis Group