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Issues/Opportunities for Resource Use Management Improvement: This Case Study involves a 254 bed acute care facility in the US Midwest. This hospital, like the majority of hospitals in the Midwest, is facing severe, multi-faceted reimbursement declines, as well as a loss of significant investment monies… all impacting their ability to serve fully their acute patient population. The hospital looked to E-MUSIC’s massive and diverse set of Solutions to enhance the hospital’s financial stability in order to more completely and effectively serve their hospital-based clientele.
With E-MUSIC’s patented algorithmic filter, the hospital selected and sequenced numerous, relevant, focused, cost-effective Solutions. This facilitated E-MUSIC’s operational optimization approaches and resource use effectiveness techniques such that substantial savings on a predictable and guaranteed basis would be achieved.
For example, one of the E-MUSIC Solutions chosen by the hospital was a surgical procedure custom pack analysis Solution. The hospital was using several custom packs for surgery cases and spending money excessively on them. Custom procedure packs usually contain items packed together that are specific for that type of surgery for that particular hospital. The custom packs are specifically hospital-customized and procedure-customized. These packs usually run 25-50% above the cost of buying the supply items separately. Procedure packs can save a hospital’s staff time if only the items that are necessary are contained. The standard packs contain fewer items, are more cost-effective and usually contain more generic (and thus less-expensive) items. Procedure packs should contain only those items that are deemed absolutely medically necessary to complete the surgery.
Solution: E-MUSIC recommended that the hospital switch from the custom packs, which are of higher price, to buying standard packs. We compared standard packs to these custom packs to analyze if they were cost-effective. We also looked at what items they were pulling manually versus items they had left over in their custom packs that they did not use on a regular basis. There were many items not being used in the custom pack. By switching to the standard packs, there were not that many items that the hospital would have to hand pull for each case, thus saving time and money.
Outcome: We were able to eliminate $239,067 in direct costs or 19% of their total costs from procedure pack purchases.
The procedure pack Solution was just one of 60 Solutions that the client will receive over their two year contract, and just one of over 500 Solutions that E-MUSIC offers. The hospital has also implemented several other Solutions pertaining to reducing physical inventory, blood use, lab studies, femoral closure devices, and several more. The hospital has achieved 95% of their 7:1 ROI in the first year. They will have significantly exceeded their guaranteed ROI of 7 to 1 by the end of their two year contract.
