Nursing Productivity Improvements exceed $3.9 million savings target, enable hospital to achieve Magnet Hospital designation

The client

A 430-bed acute care hospital recognized for its family-centered obstetrical care, orthopedics, cardiology, and oncology programs

The challenge

The client hospital had not evaluated the efficiency or the effectiveness of their nursing units or the associated staffing ratios for an extended period of time. The organization’s labor budgeting process was simply based on their historical performance. While some units compared favorably with national productivity benchmarks, their labor costs were greater than they could afford.

The approach

Through team cooperation and diligence in working toward common goals, the organization
was able to accomplish significant process improvements resulting in improved quality and
efficiency. The approach is discussed in detail in the full case study.

The results

The goal was to assess the staffing levels and systems of the nursing areas to ensure these departments maximized productivity while achieving an equivalent or higher level of care.

The hospital achieved significant annualized savings beyond their aggressive target of $3.9
million. Staff surveyed at the completion of the project indicated satisfaction with the project
and simultaneously recognized the significance of the implemented improvements. After the
changes were accomplished, this hospital became the first in its state to achieve Magnet
Hospital designation.

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