Service Rationalization

Healthcare & Life Sciences

July 24, 2014

In today’s transformational healthcare landscape, health systems must continually evolve to meet stakeholder expectations and at the same time seek to achieve size and scale. Whether through ownership or affiliation, many systems now find themselves operating multiple campuses and facilities in the same regional market, often times resulting in unnecessary service overlap or duplication. This can negatively impact both costs and quality. With the transition to value-based payment models and declining reimbursements, many health systems are now taking a critical look at restructuring their service configuration as one means of controlling cost while improving outcomes.

“Right Services, Right Location, Right Time”

Aligning operations with physical resources is commonly referred to as “service rationalization,” which can be summarized as having the right resources available at the right place and at the right time. “Right” must be defined as providing maximum access for patients in the most cost effective manner possible. At FTI, our experienced Health Solutions’ Strategy and Planning practice has developed a methodology for conducting service rationalization assessments and implementation plans. It involves thoughtful consideration of changes in the alignment of resources and transfer capabilities across a system, coordination of care and access to the most appropriate settings for optimizing patient outcomes. We review internal performance metrics as well as the organization’s external market position to ensure that findings and recommendations are practical and sustainable.


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