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How to Reduce Hospital Costs..and Remain Viable
Thursday, April 09, 2009

Hospitals are facing three major barriers in today's marketplace:  

Cost reduction challenges including process improvement, throughput productivity, staff utilization and change, and staff adoption of cost reduction via process improvement. 

Revenue generation challenges comprised of strategic positioning, brand assessment and positioning, patient experience, product/service line strategies, Medicare/Medicaid under payment and uninsured patients

Hospital CEO's demanding accountability. Hospital CEO's face significant financial challenges.  They want evidence that care environments are improving patient outcomes and workforce efficiency. [Source: HealthTech]

The solution?  Optimizing operational efficiencies. 

Work process optimization.  Significant operational cost savings can be achieved by leveraging the facility design to improve productivity, reduce staffing demands, and drive operational efficiency.   

Optimization process.  This includes clearly defining owners' operational objectives and targets, collaborating with users to indentify needs and ideas, and integrating owner's objectives with user needs to create design solutions that optimize operational efficiency

There are three core steps involved in optimizing operational efficiencies:

• 1. Mapping the Owner's Objectives
• 2. Collaborate with Users
• 3. Design Solution

The benefits of attacking the barriers through this process are clearly defined.  Hospitals will see an ultimate result of reducing costs while increasing revues through: Increased productivity, optimized  staff, increased use of advanced technologies, and reduced supply costs

See our blog next week on Mapping the Owner's Objectives to learn more about how to clarify owners' expected outcomes for the facility, before the design process begins.

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