NON-LABOR COST REDUCTION SERVICES
Balancing quality and cost of care
In today’s volatile economic climate, hospitals must take advantage of all expense reduction opportunities in order to survive and thrive. Labor cost reduction and revenue improvement projects commonly have high visibility with top-level management, while Non-Labor Cost Reduction efforts are often less effective, fragmented and departmentally-driven. Our Non-Labor Cost Reduction program can help you achieve dramatic results in this often overlooked area.
Sullivan Lakier Group prides itself on the team of seasoned consultants we have assembled to provide non-labor cost reduction services for our clients. Our staff has extensive hospital operational experience, and most have specialized clinical backgrounds. Our team utilizes this base of understanding to provide practical and effective non-labor cost reduction implementation assistance for your hospital.
OUR TWO-PHASED SOLUTION:
- Phase One - Assess cost-reduction opportunities
This process takes approximately one month and is designed to identify overall cost-reduction opportunities. Our process includes interviewing between 40 to 70 stakeholders during this discovery period. We will also gauge the organization’s readiness to achieve the identified savings. The following areas are included in our assessment:- Perioperative Services
- Nursing Units
- Clinical Lab
- Pharmacy
- Nutritional Services
- Environmental Services
- Human Resources
- Contract Services
- Professional Services
- Non-Clinical Supplies
- Phase Two - Implementation
We take a comprehensive team approach to reducing costs, with dedicated teams established by functional areas. As implementation deepens, you can expect our team to discover additional cost savings opportunities, outside of those identified in Phase I. Our collaborative team approach will involve Executive Leaders, Management, Physicians and Clinicians every step of the way. This collaboration and education is designed to build consensus and to create a financial culture shift and a shared vision to facilitate staff-supported changes that drive cost reduction. We typically identify between 80-150 cost-savings initiatives.
While our process takes approximately six to eight months to fully execute, you can expect many cost-savings opportunities to have an immediate effect, and to fully recoup the cost of implementation. Typically, the ROI in the first year ranges between 250-400% and between 700-900% over three years. Our process is:
- Executive Steering Committee-Driven
- Stakeholder Developed
- Built One Opportunity at a Time
- Short-Term Self-Funding
- Guaranteed to produce results
BENEFIT:
We will work alongside your staff to deliver savings through the following principles:
- Quality of products and services to be determined by your definition, not ours
- Begin financial culture shift through knowledge transfer
- Expand penetration of expense accountability deep into the leadership team
- Knowledge transfer
- Client-validated reduction in your non-labor expenses
- Recurring dollars to your bottom line – usually in the millions of dollars
- Enhanced, sustainable ROI
Contact Us to learn more out our Non-Labor Cost Reduction Services.
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