Penn State Health Hershey Medical Center saved $6,000 per case by:
• Reducing Supply Costs: 10%
• Reducing Length of Stay: 44%
• Reducing Post-Acute Care Costs: 49%
Already a fiscally-responsible, high-performing organization and ranked a top 50 orthopedic hospital by U.S. News & World Report, Penn State Health Milton S. Hershey Medical Center was participating in a bundled payment program for joint replacements. Leadership sought innovation to better manage its costs across the care continuum for service lines including spine and joints.
Avant-garde Health’s solution delivered unique insights into the true costs of orthopedic care inside the hospital as well as the utilization and spend for patients post-discharge. Using new analytics, Hershey identified several cost-saving opportunities including reducing supply variation, improving length of stay, and decreasing discharge to high-cost settings.
Driven by these goals, Hershey introduced new strategies to manage supply spending and introduce effective protocols for patient care. The action plan included:
- Negotiating lower contract prices with supply vendors and standardizing supply trays with cost-effective items.
- Communicating in advance with patients on expectations for an optimal recovery process and time frame.
- Implementing best practices for care pathways that lead to a timely discharge to home.