CHC Consulting is the consulting arm of Community Hospital Corp. Memorial Health System of East Texas in Lufkin, which owns Memorial Medical Center, looked to CHC Consulting to help turn around the negative financial results.
With the help of CHC Consulting, Memorial Medical marked the beginning of a significant financial turnaround. The plan CHC Consulting included:
• Conducting a coding audit, pricing analysis and chargemaster renew.
• Significantly reducing supply chain spend by enrolling Memorial Health System into CHC’s group purchasing organization.
• Driving a cultural shift to encourage the four hospitals to function more like a system, with shared resources and fewer redundancies.
• Appointing physicians to the hospital board to strengthen communications and lend clinical expertise.
• Conducting an IT platform cost-of-ownership analysis.
• Renegotiating managed care contracts.
• Optimizing reimbursement from federal and state programs.
• Implementing the proprietary CHC Productivity Tool to monitor labor expenses and maximize staff productivity.
• Connecting Memorial Health System with vendors vetted by CHC.
The results of CHC’s plan included operational improvement, financial improvement and strategic vision, according to the case study. Four hospitals in Memorial Health System of East Texas saw expense savings totaling $12.6 million in fiscal year 2011.
More Articles on Hospital Financial Turnarounds:
Restructuring or Turning Around a Hospital: It Doesn’t Mean Bankruptcy
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