Operating Margin Performance Improvement – Targeted Areas of Operating Expenses
Most hospitals have cut even politically sensitive operating expenses to the bone – there are no more “sacred cows.”
Most CFO’s doubt the juice is worth the squeeze to tackle new expense reduction initiatives.
Ni2 applies specialized insight to targeted non-labor operating expenses to uncover hidden financial benefit, including related missed revenues.
Unlock your hidden operating expense upside – we always find 1% – 3% of current budgets in additional operating margin improvement.
Expense Reduction Fact – Specialized expertise & more bandwidth is required to become a top performer
- Hospital teams don’t know what they don’t know
- Absence of established top performer metrics & benchmarks
- For outsourced services, vendors hold the “knowledge cards”
- Hospital team bandwidth stretched too thin – basic duties crowd out focus on financial performance
Ni2 focuses on these targeted areas of non-labor operating expenses for all hospitals (both expense & missed revenues)
- Pharmacy
- Supply chain, office supplies & purchased services
- Therapy services
Ni2 also reviews the following additional targeted areas of non-labor operating expenses which frequently hide expense reduction upside (depending upon the size of the hospital)
- Laboratory
- Biomedical & equipment maintenance
- Food, housekeeping & laundry services
- Employee benefits & insurance services
- IT services
- Energy services
We are execution experts – we ALWAYS deliver more financial benefit than we identify in the Assessment.
Assessments & Engagements:
No IT bandwidth required – our team pulls all required data
No fee risk for comprehensive Operating Margin Assessment – our assessments fund themselves
- We create the roadmap to deliver your hidden operating expense reduction potential
- We provide everything you need for execution success – Performance Insourced