11/3/2014 1 Strategic Cost Management: Our Experience Presented by: Al Fisk MD, MMM Chief Medical Officer 11/12/14 Agenda • Need for vigilance on cost throughout industry • Engaging a consultant to help with discipline and candor • The Everett Clinic’s situation • Approach to strategic cost management • Results so far • Lessons learned • Unintended consequences • Questions and answers
11
Embed
Strategic Cost Management: Our Experience - AMGA€¢Historically more emphasis on top line ... •Develop a Core Competency in Cost Management . ... strategic cost management
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
11/3/2014
1
Strategic Cost Management:
Our Experience
Presented by:
Al Fisk MD, MMM
Chief Medical Officer
11/12/14
Agenda
• Need for vigilance on cost throughout industry
• Engaging a consultant to help with discipline and
candor
• The Everett Clinic’s situation
• Approach to strategic cost management
• Results so far
• Lessons learned
• Unintended consequences
• Questions and answers
11/3/2014
2
Watchful Eye on Cost – Doing
Less with Less
• Need for vigilance on cost
• Patients and payers cannot afford
continued cost increases
• Growth in retail care and high deductible
plans
• Operational costs continue to increase as
we need to pay market competitive
salaries for providers and staff
Strategic Cost Management:
Required to Maintain Financial
Strength in the New Reality
• Declining utilization
• Declining reimbursement
• Increasing government payer mix
• Accelerating shift to risk-based contracts
11/3/2014
3
National health expenditures as a
% of GDP
Should We Hire a Consultant?
• Consultants (Kaufman Hall) helped provide
tools, a disciplined process, candor and
fresh eyes
• Helped us remove cost reduction execution
barriers such as:
– “We need benchmarking to understand where to
find our cost savings opportunities”
– “We already are a lean organization”
– “I run a tight ship in my area, if there are cost
savings to be found they are somewhere else”
TEC made the decision to hire a consultant to help