Improving Workforce Performance

The chief financial officer (CFO) of a multistate health system in the Northeastern United States engaged BRG to help the system identify duplication and optimize its back-office functions, following a merger with another health system. Several key departments remained untouched following the merger. Based on previous performance improvement work BRG had done for this health system, the executive leadership team (ELT) engaged BRG’s workforce team.

BRG initiated the workforce performance improvement project by meeting with the ELT to better understand members’ concerns and organizational goals. The CFO tasked BRG with helping the organization find savings to ensure it would meet its capital needs over the next five years.

A variety of studies over the last two decades have found that administrative expenses account for approximately 15 to 25 percent of total national healthcare expenditures, which represents an estimated $600 billion to $1 trillion per year of total national health expenditures of $3.8 trillion in 2019.

Findings from BRG’s initial comprehensive assessment identified a potential $131 million in recurring benefit, with $15 million in savings specific to corporate overhead departments (e.g., Revenue Cycle, Human Resources).