3 ways to build a better hospital budget
The organization, one of the largest in Western New York, needed to reduce overall spending to remain competitive. Kaleida Health turned to EPSi, which provides clients integrated budgeting, financial decision support and long-range financial planning, helping to improve patient outcomes while reducing costs and maximizing revenues.
Kaleida Health used three methods to identify total cost opportunities throughout the organization:
1) Break up the budget process.
The team at Kaleida Health examined each service line individually, determining the utilization and per-patient cost targets.
“Breaking it into smaller pieces made it more actionable,” said Kaleida Health Senior Director of Decision Support Christine Lanza.
2) Develop a strategic approach.
The organization used EPSi Product Line Analyst reporting to determine total cost opportunity, comparing expected amounts with actual costs. The team set a goal of reducing costs by 10% the first year.
3) Build the budget with actual data.
Using EPSi Strategic Product Budgeting, Kaleida Health used a data-driven approach to budgeting and achieve a consensus with its physicians on goals.
Kaleida Health also used dashboards within EPSi to measure each product line monthly against the set targets. They were also able to include clinical quality metrics to make sure those didn’t drop as they reduced costs.
The outcomes that Kaleida Health achieved were “dramatic,” according to Lanza. The team reduced the average length of stay by more than a full day. The organization also saved $15 million in operational costs.
The EPSi solution helped Kaleida Health make the most of its resources, saving both money and time, and helping the organization provide patients high-quality care. To learn more, download a free success story here.