Commercial
Jackson Well being System, one in all Florida’s largest public healthcare suppliers, has slashed $160 million in working bills with none layoffs, a exceptional feat amid the business’s staffing challenges.
The associated fee-saving measures have been recognized with the assistance of consulting agency McKinsey & Co., which labored with the hospital system to pinpoint inefficiencies and implement strategic value reductions.
Jackson Well being System CEO Carlos Migoya informed Miami At present that the efforts targeted on lowering pricey time beyond regulation, bettering affected person discharge occasions and guaranteeing correct documentation for reimbursement, leading to a 5% discount within the system’s $3 billion funds.
Mr. Migoya defined that the initiative started two and a half years in the past as Jackson Well being confronted rising prices and a staffing scarcity exacerbated by the aftermath of Covid-19.
“We noticed what was occurring with inflationary traits and the whole lot going up in worth, together with staffing prices. We had simply come off of covid, the place we had a scarcity of employees and we have been paying numerous time beyond regulation on the time and it was a significant problem. So, we began taking a look at consultants across the nation that had expertise in these eventualities,” he mentioned.
That’s when Jackson Well being began working with McKinsey & Co. to enhance organizational effectivity quite than lowering employees, an important distinction given the business’s ongoing staffing challenges.
“The view was that we have been in need of employees, so subsequently, as we turned extra environment friendly, it was not about slicing employees however about right-sizing the group to the present employees we had,” Mr. Migoya mentioned.
By addressing operational bottlenecks, reminiscent of delays in medical imaging that saved sufferers hospitalized longer, Jackson Well being improved affected person size of keep whereas lowering time beyond regulation prices by $70 million to $80 million yearly.
“One of many huge issues that we ended up getting was a significant discount in time beyond regulation by bettering our efficiencies and ensuring that sufferers might go away as quickly as they have been able to go dwelling and never essentially have to attend an additional day or two as a result of they needed to have an x-ray or an MRI or CT or one thing that will delay the method,” Mr. Migoya continued.
“We’ve got additionally dramatically improved our staffing ranges. That’s one motive our time beyond regulation has been lowered by a considerable amount of cash,” he added. “On the similar time, we now have one of many lowest turnover charges of any hospital system, actually in Florida and perhaps within the nation, with a turnover ratio round 6%.”
Whereas Mr. Migoya mentioned he couldn’t speculate on whether or not an analogous mannequin might work for different hospitals, he famous that bettering effectivity is crucial throughout the business.
“Nobody is trying to pay extra for a similar procedures. Insurance coverage firms, Medicaid and Medicare are all trying to pay much less,” he mentioned. “The one method that hospitals can keep worthwhile is by bettering their efficiencies.”
With the two-year settlement with McKinsey & Co. concluded in December 2024, he mentioned, Jackson Well being has since included these classes into its inside transformation workplace to maintain long-term enhancements.