Business Intelligence: Case Studies and Success Stories

The ultimate value of any solution can be measured only by the tangible impact it has on performance. Therefore, the Advisory Board treats each of its Business Intelligence & Analytics programs as a research laboratory where we can measure the return certain tools and practices have on the organization. We then profile these results as case studies for dissemination to the other members of that organization’s cohort.

Revenue Cycle Performance: Revenue Cycle Compass

A two-hospital system had seen their accounts receivable improvements stagnate at 49 days and believed the organization lacked “one version of the truth” in their reporting.

The Revenue Cycle Compass program helped them achieve the immediate results through a 100-day campaign at the outset of their participation in the cohort. The following results were seen after that 100-day campaign:

9% reduction of A/R days (from 49 to 44.5)
Increased cash by $8 million
Increased cash collections to 105.4%

Far from being done, the system sustained their efforts and at the conclusion of their first year in the Revenue Cycle Compass program, they had seen the following improvements:

7% additional reduction in A/R days (down to 41.5)
13% reduction in dollars in A/R older than 90 days
$1.5 million reduction in bad debt write-off and charity care expenses
$200,000 reduction in denials

"Revenue Cycle Compass has empowered my teams. Previously, we were asked to pull out data from base system reports, which was timely and not user-friendly. Now, my teams can pull out claims easily and without having to go through each claim in their category. We save significant time and collect more revenue."
-- Patient Financial Services Director

Supply Chain Performance: Spend Compass

A large institution in a competitive market was confronted with rising physician preference item costs, declining reimbursements, and significant margin pressures. This organization recognized the need to reduce costs. The Spend Compass program helped it achieve the following results:

$3.2 million in savings
Enhanced supplier accountability
Improved negotiating leverage with suppliers
Increased effectiveness of materials management department

“In six months with Spend Compass, we’re $2 million to $3 million better and more effective than we could have been otherwise.”
-- Chief Supply Chain Officer

Surgery Performance: Surgery Compass

A mid-sized community hospital had a desire to gain visibility into cost information at the case level. With multiple orthopedic implant contracts expiring soon, the hospital wanted to focus on implant prices to gain negotiating leverage and improve case margins. The Surgery Compass program helped it achieve the following results:

31% reduction in total orthopedic implant costs, saving $672,000
Improved supplier negotiation leverage resulting in lower prices on joint implant RFPs

“In my first week using the tool I was able to run three analyses in a matter of minutes. These same reports took me more than two days to run prior to having this tool.”
-- Director, Operating Room