A Proactive Approach to Capacity Management
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- Ashlynn Horton
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1 Healthcare Organizations ive Capacity ment A Proactive Approach to Capacity ment Capacity Planning Patient Flow Quality Compliance Workforce Optimization Benchmarking ment solutions 6
2 Faced with unprecedented pressure to produce better outcomes at a lower cost, healthcare organizations must figure out how to do more with less. Tried-and-true approaches to cost cutting typically aim to redesign or automate departmental processes. While these tactics may work to reduce unit costs, they tend to yield incremental, one-time savings in the 3-5% range. And they do nothing to drive continuous and sustainable cost reductions of 20% or more across your entire hospital or health system. This is the target many providers say they must aim for to maintain viable operating margins. Transformational change requires new ways of thinking, and doing. It also requires new tools for identifying the largest potential savings. One of the best ways to reduce operating costs is to align staffing and capacity with predicted patient demand. Whether you re experiencing declining, steady or increasing volumes, rightsizing staffing to demand is critical to operational performance. Capacity Planning Many aspects of capacity planning are believed to be reactive. But reactive means expensive. On average, a 2% reduction in labor costs is roughly equivalent to a 1 point improvement in operating margin. In fact, there are proven ways to get ahead of the curve and stay there. McKesson Capacity Planner is a predictive analytics tool that enables you to reliably forecast patient demand far enough in advance so you can align capacity and staffing without incurring last-minute expenses. How? A combination of historical ADT data, algorithmic forecasting, clinical expert input and OR care path modeling results in a patient demand forecast with a 95% accuracy rate one month out and 97% accuracy one week out. On average, a 2% reduction in labor costs is roughly equivalent to a 1 point improvement in operating margin. $1.4M labor savings in OT reductions Vancouver Coastal Health ment solutions 6 2
3 Workforce Optimization $1M + operational efficiencies and labor cost avoidance Lee Memorial Health System McKesson s workforce optimization suite is anchored by ANSOS One-Staff, an enterprise productivity management system that enables managers to anticipate clinically relevant workload conditions and adjust schedules in real time. It also includes time and attendance processing, open shift management and self-scheduling, and acuity-based assignment and workload management. Labor costs typically account for 60% of a hospital s total expenses, with nursing labor costs typically comprising the largest fraction. Hospitals would be hard pressed to achieve double-digit reductions in operating expense without targeting this very complex and important cost center. The challenge is to rein in costs without increasing turnover. Amidst a perpetual shortage of qualified clinicians, simple salary cuts or staff reductions that put patient satisfaction, safety and quality at risk are not the answer. Sustainable gains must come from better forecasting, better baseline scheduling, and strategic use of supplemental labor. How do you reduce labor costs and turnover while maintaining safe workloads and nurse-patient ratios? ment solutions 6 3
4 at a glance To improve patient flow, the people directly involved in the care process must have a realtime view into the many clinical decisions and events that can delay care. McKesson Performance Visibility is a broadcast clinical communication system that tracks real-time patient status from admission to discharge. It uses visual controls common in other industries but new to healthcare to improve patient flow, staff productivity and care quality by exposing care delays and helping teams see at a glance what they need to do next. Clinicians can quickly identify patients with critical lab results, new orders or pending events. Telling caregivers exactly what is going on with their patients at all times at a glance, without interrupting their workflow is critical to managing length of stay. $6.3M direct variable cost savings by reducing LOS PeaceHealth Southwest Medical Center Hard-wired quality compliance For frontline clinicians, caring for multiple patients on multiple quality bundles creates a cognitive burden made worse by ever-changing regulatory requirements. Adhering to consistent quality processes across nursing units is a lofty goal and exactly what is expected under performance-based reimbursement models. McKesson Quality Monitor provides the transparency needed at the bedside to do just this. It culls through charting, physician orders, medication administration data and lab results to determine which steps in a given quality bundle have been completed, are due or are scheduled farther out. Frontline clinicians can see at a glance whether they have missed a step in a bundle, missed documenting the step or both. screen shot FPO ment solutions 6 4
5 Advisory Services McKesson s capacity management business advisors are highly trained experts with decades of experience in hospital operations. Before we implement our solutions, they will work with you to define your desired outcomes and translate them into objectives and metrics that will be used to help ensure you achieve quantifiable, sustainable results. Continuous adoption services help ensure that you are using each solution effectively for at least one year post implementation. Performance Benchmarking To understand how well your organization is meeting its capacity management goals, it s important to measure your performance both internally and externally. McKesson Capacity Benchmarks enables you to measure your performance in the OR and ED against similar facilities, regardless of what vendor systems they use. Your web-based subscription provides access to scorecards and customizable dashboards that highlight dozens of key performance indicators tied to throughput, productivity and quality for the ED, and scheduling and utilization for the OR. McKesson also provides business advisors with deep experience in these areas to help with metric interpretation, target setting, action trigger creation and overall adoption. 79.1% on-time first case starts, up from 44.8% Southeastern Health Where can we continue to improve? Where are we stuck? ment solutions 6 5
6 ment solutions McKesson s capacity management solutions are part of the McKesson Enterprise Intelligence suite, which provides guided analytics to help drive business decisions and inform action at the point of need to improve clinical and financial outcomes. Our capacity management suite includes: McKesson Capacity Planner A predictive analytics toolset that enables you to forecast patient demand with up to 97% accuracy one week out, so you can align the right resources and schedule the right staff proactively rather than reactively. McKesson Performance Visibility A broadcast clinical communication system that tracks real-time patient status from admission to discharge. It uses visual controls to improve patient flow, staff productivity and care quality by exposing care delays and helping teams see at a glance what they need to do next. Workforce ment Suite Anchored by ANSOS One-Staff, an enterprise productivity management solution that enables you to anticipate workload with clinically driven staffing and to control labor costs by optimizing deployment. The suite also includes McKesson Time and Attendance, a web-based solution that streamlines time entry, time approval, and accrual management. eshift, an open-shift management solution that creates a more flexible staffing environment and improves scheduling control. McKesson Quality Monitor A tool for driving consistent frontline adherence to quality bundles by displaying compliance status in near real-time. McKesson Capacity Benchmarks Collaborative reporting tools that leverage ED and surgical data so you can compare your capacity management outcomes against internal goals and external benchmarks. ment solutions 6 6
7 McKesson Corporation Connected Care & Analytics 5995 Windward Parkway Alpharetta, GA Copyright 2014 McKesson Corporation and/ or one of its subsidiaries. All rights reserved. All other product or company names mentioned may be trademarks, service marks or registered trademarks of their respective companies ment solutions 6 7
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