Continuous improvement reduces $30 million in health system costs, creating savings for community and employers
Montage Health (MH), a nonprofit healthcare system serving the Monterey Peninsula of California for 90 years, is a valued asset to its community, with stable market share, engaged community and strong financial performance.
However, growing concerns from local business leaders, media and market dynamics about rising healthcare costs and the affordability of local care prompted action. MH leadership, then, launched a Community Affordability Initiative to lower costs and hospital rates.
Partnering with Warbird Healthcare Advisors, they leveraged their strong culture of continuous improvement to enhance quality, throughput and outcomes – driving better financial performance and reinvesting savings to reduce costs for patients and employers.
Outcomes & Results
A successful improvement plan that generated $42 million in financial improvements over two years
Saving $30 million in the first year and reinvesting $15 million into the community through reduced rates for patients, payors and employers
Reducing hospital rates to decrease local healthcare costs
“It was refreshing to work on this project with true healthcare operators; people who had occupied our roles previously. It made the findings all the more actionable.”
- Matt Morgan
Vice President and Chief Financial Officer
Montage Health
Summary of Work & Areas of Focus
Performance improvement plan development, including expertise and execution in labor productivity; patient throughput and care management; length of stay reduction; clinical documentation improvements; HIT governance expense and interoperability recommendations; and supply/other expense reductions, resulting in:
Labor management, resulting in decreased expenses without a reduction in force
Multi-disciplinary operational process redesign within the clinical setting
Non-labor expense-saving initiatives
Leadership focus and teamwork to realize implementation speed to value
Cultural support of change processes and improvement initiatives
Team member education and training, designed to sustain results
Performance Improvement & Turnaround Services
Warbird Healthcare Advisors’ approach to performance improvement is designed to quickly but successfully transition healthcare organizations from study and assessment of opportunities to execution and results.
This rapid transition is made possible by our operators’ ability to tailor our approach to match our client partners’ specific needs. Warbird’s practitioner-advisor model delivers guaranteed results that empower healthcare organizations to sustain financial and operational improvement, from narrowly focused performance evaluations to comprehensive turnarounds.
Service offerings:
Clinical quality enhancement
Cost containment
Performance improvement assessments and approaches
Revenue enhancement
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