Financial Improvement

Challenge: Our community services client required their Cost Improvement Programme (CIP) to be validated, further opportunities identified, and implementation planned.

Solution: We developed a template to capture all CIP opportunities.  In addition to existing ideas we focused on the opportunities to make savings across the wider health economy by reducing emergency admissions and excess bed days in the local acute trust.  This could be achieved by better use of community beds.  We emphasised the importance of metrics in demonstrating improvement in performance and completed groundwork on dashboard reporting of project progress.

Outcome: We identified over £7 million of additional savings.  The planning exercise left the client with identified project leads for each initiative and a timeline for implementation.  The project set the client on course for merger with a neighbouring aspiring foundation trust and demonstrated the ongoing viability of many of the services.

Challenge: Our client was facing significant pressure from its major commissioner to reduce its local prices and sought our help in defending its income levels.

Solution: We carried out a thorough review of the hospital’s activity, costing and billing data, using it to identify potential opportunities and then to create a flexible forecasting model to demonstrate their impact. Following deep engagement with clinical teams on specific initiatives and a series of review sessions with the senior finance team and operational managers, we developed a full pricing strategy to inform the trust’s negotiations with its commissioners.

Outcome: The settlement reached between our client and its commissioners was at the lowest end of the range of possible outcomes. In addition, the finance team had an improved understanding of the drivers of income for the hospital and were better placed to give good business support to their divisional leadership teams.