Performance Optimization in health care

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Current research suggests that the health care industry has a productivity level of approximately 43%. In a landscape where the demand for care is rapidly increasing, where budgets are continually strained and where regulations are becoming more uncertain and complex, this statistic is neither sustainable nor acceptable.

Performance Optimization (PO) is a collaborative methodology that addresses modern-day challenges in health care by improving care, accountability, resource management and transparency. It is customized to the needs of individual organizations to create a positive impact on the overall margin of the hospital.

Over the past 10 years, PO has produced significant and measurable improvements in the quality of care and efficiency at leading health care organizations in Europe, Canada and Australia. Hospitals that have implemented PO, with the help of EY, point to a wide array of reasons for its success. The most commonly cited include:

  • Collaborative approach with client input and involvement every step of the way
  • An EY team that includes hands-on health care practitioners, not just consulting generalists
  • Relentless execution, where success is defined by client outcomes
  • Customization — meeting clients where they are; no cookie-cutter approaches
  • Balance — fine-tuning and meshing proven and innovative methodologies based on an individual organization’s desired outcomes
“PO is an objective, holistic approach. Objective because we are not married to any one framework, and holistic because we look at the whole picture. Otherwise, improving just one department may cause problems in another.”
- Finn Holm, Partner, Health People Advisory Services, EY

Health care organizations have experienced a wide array of positive outcomes from implementing the Performance Optimization methodology. Here are a few examples of the results they are enjoying:

  • 6%–10% increase in speed of throughput
  • 10%–15% reduction in number of operational beds (linked to increase in throughput)
  • 20% increase in bed utilization
  • 5% increase in operating room output
  • 5%–8% annual savings in operating budget

Hospitals also point to these results stemming from their implementation of PO:

  • Reduction of both financial and clinical risks
  • Teams, across disciplines, work more closely together with increased cooperation and transparency
  • Better patient satisfaction
  • Decrease in re-admits
  • Improved mindsets of clinical and nonclinical staff
  • Improved patient experience
  • Improved quality of care
  • Standardization of protocols
“PO has been proven to have a positive effect on the overall margin of a hospital through revenue optimization, cost reduction and strategic initiatives.”
- Leisa Maddoux, US Health Performance Optimization Leader, EY

Based on our extensive experience in the health care sector, we know that hospitals, like the patients they serve, have differing degrees of wellness. Wherever your hospital falls on the “wellness” spectrum, PO can prove to be a valuable ally. Learn more in our full report, Performance Optimization in health care.


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