Boosting the bottom line: Key strategies and results
In phase II of the project, Lawrence General Hospital (LGH) worked with Nordic to achieve significant financial gains, including increased revenue and reduced expenses.
Notable outcomes:
- Enabled an estimated $255,000 in potential savings with the introduction of a reprocessing program.
- Identified duplicate freight charges, which allowed LGH to dispute charges as far back as four years and implement practices to reduce next-day purchases that incur overnight shipping costs.
- Generated a usable value of $286,000 by recirculating, disposing, or donating product from the off-site warehouse.
- Optimized pharmacy expense reduction, resulting in potential savings estimated at $128,000 annually.
A collaborative approach to revenue growth and cost savings
LGH and Nordic focused on the following areas to enable meaningful revenue cycle advancement:- Supply chain optimization: Reducing purchasing costs, implementing efficient reprocessing procedures within the operating room, optimizing freight and shipping costs, and managing excess inventory
- Revenue cycle enhancement: Identifying and recovering lost revenue through denial management, charge capture improvements, linking orders, documentation and charging workflows, and contract compliance
- Clinical process improvement: Collaborating with nursing, pharmacy, and supply chain leaders to optimize drug administration protocols and drive cost savings
- Data analysis and reporting: Using data to identify cost-saving opportunities and measure the impact of implemented initiatives
- Pharmaceutical optimization: Decreasing costs through formulary updates, insulin management, and extended infusion protocols