Providing Long-Term Aid to One of the Northeast’s Largest Academic Medical Centers
October 30, 2023
FTI Consulting helped a hospital network optimize its operations, achieve cost efficiency and identify approximately USD160 million in EBITDA improvement opportunities.
Shortly after its formation resulting from a merger of two healthcare networks, the newly formed hospital network engaged FTI Consulting to assess its operational and financial performance and address urgent needs by identifying cost reductions and system and revenue optimization opportunities.
FTI Consulting conducted comprehensive performance improvement and end-to-end revenue cycle assessments of operations. The findings enabled the hospital network’s leaders to develop a roadmap to address their needs.
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FTI Consulting delivered results across the healthcare network. The team designed a future state for the network, implemented critical structures, established metrics to drive accountability, maximized usage of assets and improved brand equity.
Work expanded after FTI Consulting’s initial operational and financial assessment. Subsequent engagements addressed standardization of the healthcare network’s system processes, workforce transformation, business continuity through the COVID-19 pandemic, digital transformation and business transformation. FTI Consulting also developed and implemented a prioritized strategic initiatives roadmap to systemize back-office and administrative support service areas, including laboratories, environmental services, food services, transport and facilities.
- FTI Consulting identified EBITDA improvements worth approximately USD160 million, helped implement more than USD20 million in annualized labor productivity improvements and provided data on available resources to guide operations during the COVID-19 pandemic.
- A revenue cycle assessment identified a cash acceleration opportunity worth between USD65 million and USD91 million that could be achieved by reducing the number of unbilled accounts of discharged patients to that of industry standards.
- The team also identified cash collection improvement potential of USD28 million to USD49 million that could be achieved through point-of-sale collections and by optimizing the network’s electronic medical record software, Epic.
- FTI Consulting helped bridge a USD5 million gap between the healthcare network’s budget and actual performance across support services by applying work order management standards, setting employee performance expectations, implementing staffing and agency labor tracking tools and using various methodologies.