What’s driving Banner Health’s length-of-stay wins

Phoenix-based Banner Health has achieved significant length-of-stay improvements in recent years.

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From 2019 to 2023, the 33-hospital system lowered average length of stay, or LOS, by an average of 2.33 days among surgical patients. In 2023 alone, these improvements generated nearly $28 million in savings, contributing to strong operating performance throughout 2024. While Banner is still finalizing its latest LOS data, the system exceeded its targets for reducing length of stay in 2024, according to Marjorie Bessel, MD, chief clinical officer.

Dr. Bessel attributes Banner’s LOS reductions to a systemwide strategy that engages stakeholders across all areas of care in targeted efforts. Standalone initiatives, no matter how well-intentioned, rarely drive sustained and measurable improvements, she said. 

“Avoid looking for the single lever to improve this very roll-up measure,” she said on an upcoming episode of the Becker’s Healthcare Podcast. “Make sure you are engaging with everybody — nursing, post-acute providers, primary care physicians, specialists and even those responsible for turnaround time of your beds.” 

For many health systems, LOS remains a costly and complex challenge, as many factors can influence the duration of a patient’s hospital stay. Analyses from Kaufman Hall have found hospitals with an executive-level commitment to embedding structures and processes around LOS tend to outperform peers. Research also suggests multifaceted approaches to LOS management, rather than singular interventions, are most impactful.

“It takes a lot to move this boulder of length of stay, and there is a tipping point where you’ve got a lot of elements finally moving in a direction to really see that length of stay drop,” Dr. Bessel said. 

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