Navigating industry Financial Uncertainties Post-COVID
Oklahoma’s largest not-for-profit health system, INTEGRIS Health, has been a beacon of healthcare since the late 1950s. With almost 10,000 employees across multiple campuses and hospitals, they provide comprehensive care to families throughout the state. However, in 2020, the financial landscape began to shift, especially in the healthcare industry. Decreased revenues due to delayed care, extended COVID-19 patterns, and increased costs from inflation, labor shortages, and supply chain constraints put pressure on their financial stability. Their existing initiative aimed at financial improvement was losing momentum, necessitating a strategic partner to reinvigorate their program.
evolv stepped in with a multi-faceted approach, ready to meet the client where they were. The team began by conducting a thorough vendor spend analysis, identifying 13 categories of saving opportunities, tiered as high, medium, or low for potential savings. Recognizing the need for an effective prioritization framework, they expertly and swiftly established a robust governance structure. This included a steering committee, a program manager, multiple project managers, and specialized lead teams.
Our Team Members merged lean manufacturing techniques such as SIPOC diagrams and 5S methodology with existing processes and best practices. The result was a streamlined nine-step delivery framework guiding projects from inception to completion. In collaboration with the COO, CFO, and 90 hospital leaders, we launched a financial improvement event, initiating a 180-day sprint aiming to identify $31M in potential savings.
- Transitioning to Structure: From a disorganized state, Integris successfully transitioned to a well-structured approach through portfolio governance, propelling the financial improvement project into action.
- Surpassing Financial Targets: The project exceeded the estimated financial improvement goals of $31M, with over 130 projects executed at the midpoint of the sprint.
- Effective Spend Analysis: The team analyzed over $861mm of spending data to determine the highest savings potential through the 13 identified categories of tiered saving opportunities.
- Promising Future Savings: With the initial financial improvement estimates surpassed by 100% at the project’s midpoint, there is a promise of even greater economic advancements as progress continues.
In conclusion, evolv’s strategic approach empowered INTEGRIS Health to not only meet but exceed its financial improvement goals. Through a combination of vendor spend analysis, lean manufacturing techniques, and effective governance structures, evolv has empowered INTEGRIS Health for future financial success.