Beating the Hospital Cost Reduction Challenge with Employee Engagement
Performance Snapshot Preview: A cross-functional team of employees in a multi-campus hospital complex garnered more than $678,000 in immediate supply cost savings after adopting a simple-to-use team engagement process to brainstorm, test and put their best ideas into action over a 60-day timeframe.
When a hospital COO was faced with the need to find immediate cost savings to meet unplanned budget reductions without cutting back on the level or quality of patient services, he turned to frontline employees for solutions.
Team Engagement Strategy
The COO invited representatives from all hospital departments (admissions, operating rooms, nursing, facilities, labs, administration, and others) to identify immediate and long-term opprotunities to reduce costs in hospital supply chain functions using Rapid Action, an "all in one" team engagement toolkit for accelerating results.
Rapid Action Project Charter
How can we reduce and better control all hospital supply chain costs (service contracts, surgical supplies, shipping and freight, vehicle maintenance, office supplies, energy, and more) in order to meet our current-year budget reduction and long-term financial goals?
Sample of Solutions Implemented
- Installed a scanner to prevent instruments from being discarded erroneously with medical waste.
- Switched from white to natural-colored towels.
- Eliminated overnight shipping except in cases of patient care priorities.
- Reviewed custom surgical pack contract for cost-reduction opportunities.
- Revised vehicle maintenance schedules and adjusted materials usage to extend life and reduce external vendor expense.
Rapid Action Team Results
11solutions tested and implemented
$678,000immediate budget savings locked for three years
$321,000additional budget saving opportunities identified for further investigation
64 dayscycle time from team launch to wrap-up
"I was surprised by how much we could save on supply costs by just connecting the dots on what’s really needed and what’s being ordered. The Rapid Action approach helped us get on top of that opportunity very quickly." – Nurse Supervisor
Learn more about the Rapid Action Toolkit
Are you interested in accelerating results and increasing engagement from your organization’s change management and continuous improvement initiatives? Take a look “inside the box” of the most reliable process available for rapid, team-based improvement.