Situation

When a hospital COO was faced with the need to find immediate cost savings to meet unplanned budget reductions without cutting back on the level or quality of patient services, he turned to frontline employees for solutions.

Team Engagement Strategy

The COO invited representatives from all hospital departments (admissions, operating rooms, nursing, facilities, labs, administration, and others) to identify immediate and long-term opportunities to reduce costs in hospital supply chain functions using Rapid Action, an “all in one” team engagement toolkit for accelerating results.

Rapid Action Project Charter

How can we reduce and better control all hospital supply chain costs (service contracts, surgical supplies, shipping and freight, vehicle maintenance, offi ce supplies, energy, and more) in order to  meet our current-year budget reduction and long-term financial goals?

Sample of Solutions Implemented

1. Installed a scanner to prevent instruments from being discarded erroneously with medical waste.
2. Switched from white to natural-colored towels.
3. Eliminated overnight shipping except in cases of patient care priorities.
4. Reviewed custom surgical pack contract for cost-reduction opportunities.
5. Revised vehicle maintenance schedules and adjusted materials usage to extend life and reduce external vendor expense.