Like most health systems, Indiana University Health System (IU Health) leaders knew they had large amounts of valuable data stored throughout the organization. The challenge for the largest health system in Indiana was how to use the often-segmented data to quickly identify opportunities for cost controls and financial decision making, especially at the regional level.
To meet this challenge, the system pulled together a results-driven group called the Profitability & Utilization Support Hub (PUSH), made up of experts in revenue cycle, supply chain, clinical operations, labor analytics and more. The team’s charter: Make data-driven recommendations that could eventually drive operational and financial improvements.
The PUSH group began to identify opportunities by leveraging a comprehensive comparative database. The robust and detailed benchmarks allowed the team to see where their organization stood compared to peers.
Here are just three examples of how the team incorporated performance benchmarking to fuel its recommendations:
#1 Reducing above-average telemetry usage
The group proactively found that telemetry usage at one of the system’s hospitals was 70 percent higher than the comparison group median. The PUSH team recommended a review of the hospital’s electronic medical record order set and staffing ratios, which led to changes. The hospital’s telemetry utilization was reduced to the comparison group median within three months.
#2 Increasing oncology patient volume
The health system had recently converted one of its hospitals into an outpatient facility offering emergency department (ED) and oncology services. Using comparison data, the team discovered an imbalance between oncology patient levels and staffing levels. Leadership acted quickly and launched a campaign to increase oncology patient and provider volumes to align with staffing levels.
#3 Boosting ED capacity
The chief financial officer of an IU Health hospital asked the PUSH group for guidance to figure out why ED visits were declining even though staff reported full capacity. The data showed the hospital was efficiently using its available space — treating 20 more ED patients per day than the comparison peer average — but it had six fewer treatment spaces. Based on that insight, the hospital received approval to expand to accommodate 25 more visits per day.
If you’d like more information on how the health system achieved these remarkable results, please reach out to us.
Peer benchmarking could lead to the answer.
Tell us if this health system’s challenge sounds familiar: CHRISTUS Trinity Mother Frances Health System, located in Northeast Texas, was facing a staggering potential setback when a number of payer contracts changed. The difference amounted to a $25 million shortfall in their budget’s revenue.
The system’s first reaction might have been to issue an across-the-board expense reduction mandate to make up the budget difference. We all know that can happen a lot in the industry, but it doesn’t always produce the results healthcare organizations need, and quality of care can be impacted.
Instead, this system chose a data-driven, strategic savings approach as the path forward, with an eye on long-term financial independence from these types of shortfalls.
A look at the targeted expenses
Using a comprehensive comparative database, the system was able to benchmark costs, productivity and resource utilization against best-in-class facilities of similar size and demographics.
Leaders identified cost improvement opportunities in areas such as supply, labor costs, length of stay and purchased services — areas where the system was not at the same level as high-performing peers in terms of expenditures.
The benchmarking information from the database was also used as a call to action for staff to find methods of improving processes and cost management. CHRISTUS Trinity Mother Frances leaders formed teams and assigned financial targets. Teams then used the database to answer the question, “If another health system is able to keep supply costs at this level, what can we do to bring our costs to that level with no bearing on our patient care or satisfaction?” The health system also created a dedicated project management office to help guide the process. The results of these efforts (in box below) speak for themselves.
If you’d like more information on how the health system achieved this result, please reach out to us. You can also read the full case study here.