Bending the Cost Curve

Key Actions:
  • Organizations will continue to pursue shared services initiatives that improve quality and reduce cost.
  • Organizations will reduce salary costs by focusing on staffing at straight time.
  • Organizations will continue to pursue Lean efficiencies.

Outcome:
  • By March 31, 2017, as part of a multi-year budget strategy, the health system will bend the cost curve by lowering status quo growth rate by 1.5% per year.

Improvement Targets:
  • By March 31, 2015, shared services will achieve measurable improvements in quality while achieving the $100M in cumulative savings.
  • By March 31, 2015, we will have spent 1% less on straight time worked hours and premium hours than in 2013-14, resulting in approximately $20M savings to the system.
  • By March 31, 2015, the 2014-15 approved business cases for shared services will be presented for feedback and implemented once a final decision is made and an implementation plan is in place.

Benefits of this Work:
  • Health costs continue to increase and a focused effort is required to ensure the health system is sustainable into the future. Improvements to quality of processes and products, and business cases that identify shared service opportunities will improve the system and create savings. This project focuses on finding efficiencies in the areas of transcription services, environmental services, supply chain services, and enterprise management. Tools and processes to assist in managing the work force, ensuring that the right workers are in the right place at the right time will aid in managing compensation costs. The utilization of Lean management tools will enhance overall quality and effectiveness.