After The Queen's Medical Center in Honolulu struggled to maintain a positive operating margin, executives looked to four main areas to find savings and stabilize the balance sheet, according to a case study from Huron Healthcare.
The 533-bed hospital looked at labor, non-labor and revenue cycle operations and eventually found more than $25 million in annual recurring savings. Here are the four strategies The Queen's Medical Center used.
1. Optimize labor productivity. The hospital implemented staffing tools, standardized labor processes and reacted to volume changes so it would avoid being over- or understaffed. Executives said this maneuver saved more than $10.5 million.
2. Centralize scheduling. The Queen's Medical Center centralized scheduling for its largest departments, including surgery, radiology and women's health, to ensure time is not wasted. Leaders said this approach also improved the patient experience.
3. Improve patient screening. The hospital noted several benefits to standardizing the screening and financial clearance of patients prior to scheduled appointments. Most notably, it improved the hospital's cash collections. Patient screening and centralized scheduling, as well as other revenue cycle strategies, saved The Queen's Medical Center an estimated $6 million.
4. Manage non-labor expenses. Renegotiating the prices of certain products within the supply chain as well as distributor contracts saved the hospital roughly $8.5 million — and executives made sure to obtain insight from clinical, pharmacy and staff leaders as well.
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