Do you know the cost of delivering the key value in your organization:
- Customer or patient experience
- A safe environment
- A high quality outcome
In healthcare, we know we are getting paid more each day on value and quality. That should not be a shock to anyone. The challenge we face is really understanding what we are paying for and the value we get from this towards our organization's goals.
What if I told you to invest $200k so you could save only $50k, would you do it? What if someone said he/she could improve the customer experience in your organization, would you let them have a blank check to provide this? What's that worth to your organization?
What if I told you, I could could help reduce the incidence of diabetes and obesity in your community...would you pay for that? What if it meant each member in your community had a Nutritionalist assigned to them during every waking hour so they could guide and watch over them. Would that cost (and intrusiveness) be worth it?
The answer is probably no in every example. As we move into the back half of 2012, it is time to really dig into the value we get and challenge everything we are doing in our organization.
Some examples include:
Length of stay: We do need an appropriate length of stay (LOS) for patients. They do not necessarily want to stay any longer than they need to nor do they want to leave early only to get re-admitted later on that week. When organizations claim to save millions by reducing LOS, I would challenge them to look at the real costs of a half day - typically meals and meds. Certainly there is the opportunity cost to bring in an additional patient (assuming you would not have received this patient any other way than by gettning this bed) and staffing to the new LOS.
Staffing to the expected patient experience (satisfaction): Have you taken the time to look at how you need to staff up to improve this experience and what the true impact would be if you decreased staff. Many organizations have the conversation more is better. Are your organizations showing the plan regarding what results would look like based on different staff plans and better yet, improved processes.
My challenge to you:
What value will you make better in your organization and what is the expected and measurable quality, safety, satisfaction and financial impact for your organization?
I look forward to hearing from you.