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KY Baptist system reduces labor expense nearly $70M over 13 years

Baptist Healthcare System (BHS) is one of the largest not-for-profit healthcare systems in Kentucky with five acute-care hospitals, more than 1,500 licensed beds, and locations in four markets. Hospitals include Baptist Hospital East in Louisville, the system’s largest facility; Western Baptist Hospital in Paducah; Central Baptist Hospital in Lexington; Baptist Regional Medical Center in Corbin; and Baptist Hospital Northeast in La Grange. BHS manages Hardin Memorial Hospital in Elizabethtown. The system also includes primary physician practices, urgent care, home health, occupational health and wellness/fitness centers.

Situation:

Several years ago when managed care posed challenges, Baptist Healthcare System (BHS) in Kentucky responded with an employee layoff. However, the organizational trauma was so intense they vowed to find a better way to manage costs – especially labor which is hospitals’ largest single expense.

Solution:

BHS began using Premier’s OperationsAdvisor™ for productivity monitoring and comparative data and engaged with Premier’s Performance Partners program (placing on-site management engineers). Benchmark data was imported into BHS’s financial system, for the first time measuring staff productivity and improvement against the Premier national 25th and 50th percentiles. New processes were also established to focus on employee scheduling.

Result:

Within a year of using OperationsAdvisor™, BHS saw savings of $2.64 million. Over a 13-year period BHS reduced labor expense by nearly $70 million. Labor management is now part of BHS culture.

"Premier is involved in all of our labor management processes with their products and Performance Partners program. What’s the largest expense you have control over in any healthcare organization? It’s labor. I can definitely recommend Premier."

Tony Bohn, VP of Human Resources
Baptist Hospital East in Louisville

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