Challenge: System leadership came to MDR™ looking for innovative ways to save money primarily in the areas of Supply Chain/Spend Management.
Solutions: Completed Resource RoadMAP™ and identified multiple opportunities for savings. Presentations were coordinated with various Best Practices Partners. Areas pursued were Equipment Maintenance Assessment, RFP Preparation & Management and Inventory Count Solution.
Result: Equipment Maintenance Assessment identified over 24% savings ($1.5M) in year one and projected savings of more than 34% ($2.4M) in years 2 through 5. The Inventory Count Solution has provided the system with additional cost savings by allowing the system to complete physical inventory counts quickly and easily.
2 Acute Hospital System - Combined 340 Beds
Challenge: Organization was seeking complete financial turnaround.
Outcome: Realized Cost Savings - $16M (total annual savings) for the financial turnaround, $9.4M per year attributed to efficiency improvements.
FTE/Adjusted Occupied Bed - reduced from 6.15 to 4.5 over a two year period (these figures include all system employees)
Three Hospital System
Challenge: System had two separate out-sourced programs for their biomedical and imaging related equipment service needs. Service issues were constantly reported and Administration was investigating cost savings initiatives.
Solution: ProvidedEquipment Maintenance Assessment analyzing all aspects of service delivery. Expiring contracts were immediately extended 90-days with favorable terms and our team developed a timely RFP process.
Outcome: Delivered a comprehensive asset management program with an industry leader providing over $500K in annual cost-reduction, and included a comprehensive centralized maintenance management software tool, and on-site personnel.
Health Network (8 Hospitals)
Challenge: Financially troubled, Health Network leadership was seeking opportunities to reduce operating cost and drive margin to net income.
Solutions: MDR™ worked with executives to identify cost savings opportunities, focusing on the area of Spend Management/Supply Chain. Implemented Best Practices™ e-Payables and Electronic Data Interchange (EDI) solutions.
Results: E-payables solution generates $1M in total net income improvement from the cash rebate and reduced check printing cost. EDI delivered immediate ROI and significant cost savings.
280 Bed Acute Hospital
Challenge: Hospital leadership was seeking better visibility and management in the area of supply chain project management.
Solution: Value Analysis Management platform.
Result: Hospital was documenting $1.5M in savings each year. After implementing the Best Practices Solution, the Hospital implemented $4.5M in documented savings in 9 months!
226 Bed, Acute Hospital
Challenge: Concerned with bringing savings and efficiency to the accounts payable function while also exploring new revenue streams.
Solution: e-Payables Solution
Outcome: Increased back office efficiencies and vendor participation, generating $13K-$14K monthly in rebate. Expected to reach $300K annually.
Surgery Center Company - 11 centers
Challenge: Seeking Supply cost reduction, contract price compliance, corporate visibility into network of facilities, improve inventory control.
Solution: Materials Management Information System
Outcome: Achieved over $1M in savings within the first year of the system deployment. The savings was achieved by having greater visibility into the prices paid for each product across all ASCs through 3-way match process. Also, the enterprise system made it possible to track and enforce local and GPO contracts across all of ASCs.
IDN - 5 Health Systems (1,300 Beds)
Challenge: Seeking transparency and ease of identifying and vetting supply management opportunities, decisions, and results.
Solution: Clinical Spend Management Platform--real-time scenario modeling and trend-spotting, fast analysis, and benchmarking.
Outcome: $2.8M savings (combined with other initiatives) within the first year
Physician Group - 80 multi-specialty doctors
Challenge: Wanted to ensure money on supplies was being spent in the most responsible and efficient way possible. Their biggest problem was the process that is required to deliver accurate and consistent reporting.
Solution: Electronic Materials Management System
Outcome: Updated and automated the entire process of supply chain management. Eliminated excessive ordering and reduced on-hand inventory of a single product category by more than $50,000 during the first month.
100 Bed Rural Hospital
Challenge: Shifting reimbursement practices and the rise in competition from nearby industry powerhouses created new financial challenges.
Solution: Productivity Benchmarking Assessment
Outcome: Services are now functioning at elevated performance levels, with 68 percent of all monitored departments operating at or above the 75th percentile. Paid hours per adjusted discharge saw a reduction of 40.3 hours in about 24 months and a decrease of 40 total paid FTEs through better management, attrition, more effective scheduling and enhanced position control.
Major Healthcare System
Challenge: Consolidate facility operations across 7 different campuses and develop a cost-savings plan for more than 2.5M square feet of space.
Solution: Consolidated and centralized Facility Management Operations (MRO) to achieve one common facility management solution. Provides enterprise-wide facility information for day-to-day operations / maintenance and emergency response situations.
Outcome: Saved $1.8M for just the main campus. reduced FTEs by 23%, added 341,845 square feet, increased square feet/FTE by 51%, reduced number of overall work orders by 26%, and improved customer satisfaction.