CASE STUDY 1
A 60-bed acute care hospital's success story
PROBLEM
A 60-bed hospital, located in the Mid-West, looked for savings, given their market's declining economic environment. The hospital was particularly attracted to Sevenex® approach for two critical reasons:SEVENEX®
• The hospital wanted the assurance and predictability of the Sevenex® contractually guaranteed ROI of 7 to 1 in actual, implemented new savings and net revenue dollars.
• Further, Sevenex® Solutions contractually guaranteed that the 7 to 1 ROI was achievable without layoffs. This was a very important issue where this community hospital is the largest employer in an already financially-impaired industrial state.
With the Sevenex® patented algorithmic filter and on-site consultants, the Hospital selected and sequenced numerous, savings/revenue-generating Solutions. This process was facilitated by the Sevenex margin optimization approaches. The Sevenex® Solutions produced substantial savings and new net revenues on a predictable and guaranteed basis, increasing operating margin 3 percentage points:
OUTCOME
Within the first 5 months of the Sevenex® engagement, the hospital exceeded its three year (not a typo) savings/revenue goal by 30%. Within 8 months, the hospital exceeded its three year goal by 159%, for a total calculated savings of almost $5 million within the first 8 months, in only 22% of the contract period.The following is believed to have contributed to the hospital's success:
• A highly motivated and engaged hospital management team, starting with the CEO.
• An effective, internal process for the Sevenex® implementation teams, led by the
executive champions internally in charge of the Sevenex® engagement.
• Strong leadership and engagement from the CNO and VP Support Services.
Further factors that contributed to this accelerated success:• A culture of dedication to the Hospital and eagerness to see it thrive.
• A thorough assessment of facility and department interviews by Sevenex® consultants to determine the best Sevenex® Solutions that would provide "quick wins", i.e., early and large savings/revenues, to establish credibility for the program, while gaining buy-in.
• A focus on Solutions for immediate and large revenue generation proved highly financially advantageous.
• Frequent Sevenex® consultant site visits with hospital's team leaders and executive champions. Scheduled debriefing meetings with Sevenex® consultants and hospital executive champions at the end of each site visit to discuss progress and barriers to implementation.
• Consultants' frequent follow-up with each hospital Solution team leader in between site visits to remain on track with Solution implementation. This provided coaching when necessary and positive feedback to Solution team leaders, with emphasis on "their" success.
• Consultant facilitation with vendors to ensure collaboration and timely responses to client.
