As hospitals and health systems face lower reimbursements, becoming more efficient and lowering costs is top-of-mind for many hospital executives and board members. For instance, officials at Hillcrest Health System in Waco, Texas, wanted to make improvements to the system's bottom line, so they enlisted the help of Community Hospital Consulting, the management and consulting arm of Community Hospital Corp.
According to a Community Hospital Corp. case study, CHC Consulting identified opportunities and initiatives to cut costs and streamline operations, such as the following six in the supply chain and labor management areas:
• Implementing inventory reduction targets
• Returning all overstock inventory to vendors for credit
• Identifying and getting rid of obsolete inventory
• Establishing par levels for all supplies based on current patient volumes
• Implementing a productivity reporting system
• Using existing human resources more effectively
Hillcrest's team worked with CHC to implement the initiatives. As a result, the system saved more than $16 million, according to the case study.
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