NON-LABOR COST REDUCTION SERVICES
Balancing quality and cost of care
In today’s volatile economic climate, hospitals must take advantage of all expense reduction opportunities in order to survive and thrive. Labor cost reduction and revenue improvement projects commonly have high visibility with top-level management. For this reason Non-Labor Cost Reduction efforts are often less effective, fragmented and departmentally-driven. Our Non-Labor Cost Reduction program can help you achieve dramatic results in this often overlooked area.
Novia Strategies prides itself on the team of seasoned consultants we have assembled to provide Non-Labor Cost Reduction services for our clients. We provide credible subject matter experts around core areas of cost including general supplies, medical and surgical supplies, physician preference items, employment practices, pharmacy and service and professional agreements. Our subject matter experts utilize this base of understanding to provide practical and effective Non-Labor Cost Reduction implementation assistance for your hospital. Because our approach is comprehensive and partnership driven, we achieve results beyond what you can accomplish alone.
Non-Labor Expenses are your Second Largest Expense Category
OUR APPROACH
We will work hand-in-hand with your Executive Team, Physicians and Clinicians to instill a culture of expense awareness and accountability.
Our approach includes the following principles and goals:
- Collaborate with hospital staff to develop a shared vision which supports sustainable savings
- Coordinate a program in which you set the quality parameters to ensure that your product and service standards are maintained
- Generate recurring cost-savings to your bottom line – usually in the millions of dollars
- Ensure that your return on investment is expeditiously realized
GETTING STARTED
If you desire we can begin by first conducting an initial no-cost Desktop Assessment. This preliminary analysis of high level financial data provides benchmark-driven ratios that identify potential cost savings opportunities. These results will help to quantify your potential cost savings and set the stage for performing a full-scale analysis.
Our Two-Phased Solution:
Phase One – Assess cost-reduction opportunities.
This process takes approximately one month and is designed to identify overall cost-reduction opportunities. Our process includes interviewing between 40 to 70 stakeholders during this discovery period. We will also gauge the organization’s readiness to achieve the identified savings. The following areas are included in our assessment:
- Perioperative Services
- Nursing Units
- Clinical Lab
- Pharmacy
- Nutritional Services
- Environmental Services
- Human Resources
- Contract Services
- Professional Services
- Non-Clinical Supplies
Phase Two – Implementation.
We take a comprehensive team approach to reducing costs, with dedicated teams established by functional areas. As implementation deepens, you can expect our team to discover additional cost savings opportunities, outside of those identified in Phase I. Our collaborative team approach will involve Executive Leaders, Management, Physicians and Clinicians every step of the way. This collaboration and education is designed to build consensus and to create a financial culture shift and a shared vision to facilitate staff-supported changes that drive cost reduction. We typically identify between 80-150 cost-savings initiatives.
While our process takes approximately six to eight months to fully execute, you can expect many cost-savings opportunities to have an immediate effect, and to fully recoup the cost of implementation. Typically, the ROI in the first year ranges between 250-400% and between 700-900% over three years.
Our process is:
- Executive Steering Committee-Driven
- Stakeholder-Developed
- Built One Opportunity at a Time
- Short-Term Self-Funding
- Guaranteed to meet results
Contact Us to learn more out our Non-Labor Cost Reduction Services.
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