Mapping out a more efficient healthcare network

A large national healthcare provider with 30 hospitals and 200 acute-care facilities faced prohibitively high labor and supply costs and was looking for margin improvement opportunities to fund future expansion. AlixPartners was brought on to assess the baseline of the organization in terms of cost and structure, conduct benchmarking, identify consolidation opportunities, and guide the company to a future-state model by standing up a sustainable transformation program and governance structure. 

We identified $100 million of EBITDA improvement opportunities across labor functions and non-labor spend, mapping out field and executive leadership structures for the complex network of facilities, and implementing cost controls to better manage clinical and non-clinical spend. 

Looking to the future, building a platform for growth meant an opportunity to expand access for more patients, and to support the provider’s core mission to deliver the highest quality of care to their communities.