Top Benefits of a Partnership for Healthcare Facility Operations (Part 1 of 2)

0 CommentsBy

March 30, 2017

healthcare facility

A strategic partnership for facility plant operations delivers benefits in the form of reduced costs, streamlined operations and an enhanced patient experience. It also allows hospital leadership to focus on its intended, core competencies.

In part one of this two-part series, we explore five reasons to form a strategic partnership for healthcare facility and real estate management.

Reduce occupancy costs

As healthcare systems expand through acquisitions, partnerships and affiliations, a lack of coordination in key areas among healthcare systems’ member hospitals and their facilities has become an issue. Instead of a unified health system, many operate as a loosely affiliated collection of individual hospitals, clinics and other key functions.

Case in point

A major healthcare system had resorted to addressing issues on a case-by-case basis after struggling to identify system-wide solutions. We developed and implemented a plan for Integrated Facility Management. The effort encompassed more than 34,000 assets at more than 500 locations across a four-state territory. Centralizing the real estate function yielded extensive benefits for our client, including business intelligence that informed better decision-making for capital allocation, and more than $4 million in savings in 2015.

Generate more revenue

The U.S. healthcare tab topped $3.03 trillion in 2014, according to figures from the Office of the Actuary, an independent arm of the Centers for Medicare & Medicaid Services (CMS). With the aging population and more insured under healthcare reform, handling increased volume profitably is a key goal of healthcare executives. A third-party can identify solutions to meet system growth initiatives whether for new space or by re-configuring existing space.

Case in point

We helped a large healthcare client identify underutilized and vacant real estate assets with the potential of $16.3 million in opportunity for growth and development. A marketing plan is now under way to realize the value of these assets.

Improve capital management

Prioritizing real estate and facilities budgets, including how much to allocate for things like repair and replacement, can be challenging. Partnering capital management with an expert in healthcare real estate can maximize strategic planning and allocation of dollars.

Case in point

A major healthcare system was well into a number of active capital projects that while budgeted at $155 million, were headed toward a total of $218 million. We provided recommendations, along with the tools and processes to help the organization manage the budget and improve communication. This reduced the capital investment to $171 million, saving the system $30 million.

Ensure maintenance of all capital assets, not just real estate

Partnering with a firm that excels in healthcare facility management can result in improvements to preventative maintenance, as well as reduced healthcare associated infections. By actively pursuing infection control opportunities in facility design, management and operations, a real estate partner can support reduced HAI rates and help healthcare providers realize revenue gains under value-based reimbursement contracts.

Case in point

For instance, at one healthcare system, our facilities teams do a daily check of the pressurization and air exchanges of every surgical site in the system to avoid environmental conditions that could promote the spread of HAIs in their facilities.

Delegate energy management for savings and sustainability

Energy and sustainability professionals help providers reduce their carbon footprint and contain costs, allowing them to focus on their core mission of healthcare delivery.

Case in point

By retrofitting lighting fixtures, we saved one client approximately $880,000 annually. A change to LED lighting in parking lots and garages created a more appealing environment and made users feel safer. Together with our client, we’ve launched almost 100 different energy projects that have led to more than $3.7 million in savings in four years.

Subscribe CTA

 

Leave a Reply

Your email address will not be published. Required fields are marked *