Performance Improvement Assessment Provides Distressed Rural Hospital with Plan and Resources that Delivers $4M in Savings in First 9 Months
The Stephens County Hospital Authority, the governing body for a $40M NPR rural community hospital, retained Warbird’s professionals to perform a Performance Improvement Assessment. Warbird’s professionals developed a comprehensive report that identified approximately $5M in cost savings and revenue enhancing opportunities. 13 and 26-week cash flow analyses were performed that provided the Board with critical information concerning the hospital’s liquidity constraints. Ultimately, the Board elected to implement the performance improvement plan and retained Warbird’s professionals to serve as a strategic advisor to the Board. The hospital also retained a Warbird revenue cycle specialist to serve as Interim Revenue Cycle Manager. Warbird’s performance improvement plan was executed upon, allowing the hospital to avoid significant liquidity issues and realize sustainable operations.
“I have never seen such a dead-on assessment. Warbird’s performance improvement projections were eerily accurate, and every bit of projected savings were realized.”
-Roger Forgery, FACHE,
Stephens County Hospital, Interim CEO
Stephens County Hospital was experiencing operating losses varying from $200K to $500K per month and a rapidly declining cash position. Limited management resources constrained the hospital’s ability to develop and execute on performance improvement initiatives. The board, growing concerned for the hospital’s financial viability, retained Warbird’s professionals to perform a Performance Improvement Assessment and advise on the hospital’s available strategic options.
Warbird’s professionals provided the board with a comprehensive performance improvement assessment and plan. The assessment identified opportunities in the hospital’s revenue cycle, labor productivity, and case management processes to enhance and secure the hospital’s financial performance. Absent effective execution of these initiatives, the hospital was projected to exhaust its cash reserves within 6 months’ time.
Within nine months of launching its performance improvement activities, Stephens County Hospital realized $4M in savings. During those same nine months, the cash position remained steady at $3.2M, thereby controlling further cash erosion.
Using the Warbird team’s analysis and performance improvement assessment, Roger Forgey, FACHE, Interim CEO began implementing the turnaround plan. Forgey stated that he had never seen such a “dead-on assessment,” and added that the Warbird team’s performance improvement projections were “eerily accurate.” The performance improvement assessment’s recommendations were the most effective measures for the hospital to pursue and “every bit of projected savings was realized.”