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Posted by Sarah Ramsey

  • Aug 3, 2020

Cost Metrics Series - #4 Administrative Costs

 

How many people do you have managing your practice roster, schedule and payroll? Administrative costs can add up fast.

 

Think about what your team is doing and how they are managing their time. Are there recurring monthly reports that take time to build, manual tasks or data sitting in excel or email that your team needs access to? You can help your team to do more by by leveraging technology. From a recent Harvard Business Review article, "David Rock, author of Your Brain at Work, found that we’re truly focused on our work a mere six hours per week... When you stop doing the things that make you feel busy but aren’t getting you results (and are draining you of energy), then you end up with more than enough time for what matters and a sense of peace and spaciousness that constant activity has kept outside your reach." What does your team do that keeps them busy but does not yield results?
 

When we begin an evaluation with a customer we look at the potential return on investment of our software. The majority of savings are related to utilization optimization of labor costs but often times up to 30% of expected savings comes from team efficiency gains. We see a huge range of administrative costs per shift when groups are not leveraging technology to support their practices.

 

Here are some of the major savings areas we see:

 
 

Medical Director Time

 

When thinking of your practice efficiency one of your most valuable resources is your medical director. The more time your medical director can spend on team development and patient initiatives the better. Is your medical director spending time scheduling, checking on privileges, or dealing with payroll questions? The cost of their time can add up quickly if they are allocating a lot of their admin time to these tasks.

 
 

Payroll Accuracy Issues

 

Physician and nursing compensation can get complicated to calculate with differentials by shift and location. We notice some of the biggest savings for teams in our automation of their payroll calculations (see our case study here). Getting payroll right depends on 3 things:

  1. the schedule and hours are submitted correctly (providers validate time via our mobile app)
  2. automating pay rates and calculations
  3. payroll is calculated correctly. 

Every payroll issue takes resources from your team to research the issue, communicate with providers and send wires/corrections. This is a really easy area to get fast team wins.

 
 

Under Utilized Privileges

 

Privileging new providers is time consuming, are you utilizing all privileged full and part time providers? We recently did a case study with a group and found they were not utilizing temporary provider privileges well and resulted in huge waste for the team (check out how we helped reduce privileging waste here).

 
 

Team Satisfaction

 

Manual and tedious work is not fulfilling work for your teams. We help automate some of the most annoying tasks healthcare operations teams face like running payroll, tracking rosters/privileges and managing the schedule and time approvals. In a research study by economists at the University of Warwick found happiness made people around 12% more productive. Do your teams have the tools they need?

 

Let us show you how we can increase your team efficiency and gain visibility into your administrative costs/shift. Reach out to kimedics@kimedics.com to begin your ROI assesment.

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