Client Situation: An 85-bed suburban hospital implemented policies meant to increase productivity and profitability for the hospital. The rehabilitation department reacted negatively and collectively resigned – giving the hospital two weeks notice. The Chairman of The Board of the hospital contacted us and asked that we help them to resolve the situation.
Solution: Integrate contract management solution that will immediately provide adequate staff to server patients, increase patient satisfaction with hospital rehabilitation services, change the rehab environment into a positive place to work, and make the department profitable.
At the time the staff consisted of 7 professionals and 2 support personnel. The services consisted of inpatient rehab for the acute floor with 85 beds, a hospital based skilled unit of 35 beds, a contract with a local non skilled nursing home, and modest outpatient services delivered at the hospital.
We negotiated a contract with the hospital within 3 days, and designed it to reward our management company for growth - while eliminating any risk to the hospital for staffing or financial loss.
One week following the negotiations, we walked into the hospital with our core operational managers to begin the contract. Through our efforts, we took over without canceling a single patient visit. We immediately went about changing the culture of rehab in the hospital. The rehabilitation department was seen by the other departments and physicians as an “elitist” department that was difficult to work with, and lacking in customer service.
Our core management staff started hiring new therapists, and gave them hands-on training - not only in clinical techniques, but in successful customer service attitudes and techniques.
That first year, we increased revenues 169% for the rehab department, and increased their gross margin contribution by 547%. In the subsequent years, we helped establish a home health division, expanded outpatient services to 3 off-site free standing clinics, and added an acute rehab unit to the hospital. Compared to the base year, the rehab department has realized a 913% increase in revenue, and a 2194% increase in gross margin contribution.