Barton Memorial Hospital (BMH) is a 63-bed community hospital with an average daily census of 24 patients. Set in the resort community of South Lake Tahoe, BMH faces tremendous seasonal volume fluctuations due to the surrounding ski and casino industries. This fluctuation and the changing landscape within the healthcare industry posed challenges and put their financial stability at risk.
Recognizing the need for outside expertise, BMH asked Novia Strategies for help. Together, they established project goals that would enable BMH to achieve its financial objectives:
- Establish department-specific productivity targets
- Complete department-specific analyses to evaluate staffing, scheduling to demand, flexing procedures, and core staffing levels
- Develop a bi-weekly productivity monitoring tool
- Refine policies and procedures for position control, position requisition, and productivity monitoring
- Implement bi-weekly departmental productivity reviews
“Partnering with Novia enabled us to identify and save $4.1 million in labor expenses, and positioned us for our future with another $1.2 million in saving opportunities…”.
Novia worked shoulder-to-shoulder with Barton executives, managers, employees and medical staff throughout the engagement. This collaborative approach ensures true buyin to the project through all levels of the organization – which the Novia team knows is vital to the long-term sustainability of the implemented changes. Following an in-depth assessment, the Novia team commenced the implementation phase with a benchmarking exercise, which determined baseline performance levels for all departments.
Altogether, this project resulted in $5.3 million annual savings – making it a success in the eyes of both Novia and Barton Memorial Hospital. These savings resulted from an initial reduction of 31 FTEs and $3 million in annual labor cost-savings, an additional reduction of 9.5 FTEs and $1.2 million future savings through attrition, and $750,000 in non-labor savings.