P3 Case Studies

P3 Case Studies and Supporting Data

P3 Case Study One: Outpatient Observation Services Optimization
In October 2006, we worked with a hospital that had a decentralized observation system estimated to be out of compliance in excess of $450,000 per month. We evaluated both the model of care and determined the best options for improved efficiency considering the current circumstances.

We evaluated observation unit practice and location options, and made recommendations based on best clinical and business practices, as well as unique hospital circumstances, given the hospital’s business objectives. We evaluated clinical quality, patient satisfaction, and communication. We mapped patient processes, interviewed internal and external subject matter experts, conducted workflow analyses, reviewed and analyzed best practices throughout the nation and presented best options.

P3 demonstrated the use of best prevailing practice as evidence, applied industrial engineering technique for measurement, and human factors engineering for change management. This method effectively determined the optimal approach to solve an immediate business problem. P3’s recommendations were aimed at reducing denials and inappropriate admissions, optimization of patient throughput and maximizing bed usage. The potential financial upside was in excess of $9 million.

P3 Case Study Two: Emergency Department Optimization
In 2006, P3 analyzed the revenue and expenses of the ED practice for two hospitals which total 100k visits. Our work included:

Business case and study models for replacement options
Appropriate service level agreements (SLA) and practice standards meeting all regulatory and compliance issues
Three options considering all governance structures; (1) internal team, (2) local physicians assembled in democratic partnership, and (3) contract management group (CMG)
All three options consisted of highest caliber leadership and attending physicians certified in Emergency Medicine
Aligned incentives to create a shared business interest in achieving increased productivity and efficiency as well as improved patient and referring physician satisfaction
All three recommendations significantly reduced subsidy in excess of $800k for the hospital system
All models rewarded the practicing physicians for increased productivity