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Throughput Solutions: Improving LOS and Resolving Barriers to Patient Flow

Health Solutions

November 11, 2015

As reimbursement for hospitals declines due to penalties for poor outcomes (e.g., readmissions and hospital acquired conditions), the increased use of observation, and payment recovery audits, pressure mounts to increase the efficiency of the clinical enterprise. At the same time, the Affordable Care Act sets into motion a growing momentum for a greater percentage of hospital revenues to derive from alternative payment methodologies, such as shared savings within Accountable Care Organization (ACO) arrangements. These alternative payment methodologies further incentivize hospitals to improve their clinical efficiency and reduce patient length of stay (LOS).

FTI Consulting’s Approach
Our experienced, multidisciplinary team detects and captures the clinical and financial opportunities which often lie hidden within your organization by identifying inefficiencies in care processes, quantifying clinical opportunity, and deploying a team with strong operational experience to address the root causes.

FTI conducts an external benchmark analysis to provide a relative opportunity estimate based on top performers in numerous categories, including local, state, national, and other custom peer groups. FTI also performs internal benchmark analyses that help organizations to identify the internal variation, which can serve as a powerful lever for change. The internal analysis helps physicians to recognize when their colleagues are achieving higher performances within the same system, under the same financial and resource constraints, and with the same “inefficiencies”. For those physicians who believe that “their patients are sicker or more complicated”, the data is severity adjusted in very discrete ways. Additionally, quantifying LOS opportunity as a dollar-value based on the likely reduction in costs directly connects LOS management to the bottom line, serving as a strong influence for clinicians and administrators alike.

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