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Children’s Hospital Boston addresses operating losses and significantly improves their operating margin with Alliance Decision Support®

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Problem

Located in the heart of Boston’s medical community, Children’s Hospital Boston is a 377–bed comprehensive center for pediatric health care. For the 16th year in a row, Children’s Hospital Boston has been rated one of the nation’s top hospitals specializing in pediatric care, according to a survey by “U.S. News & World Report.” Not only are they one of the largest pediatric medical centers in the United States, but Children’s is also home to the world’s largest pediatric research program, with a staff of 1,200 driven scientists and staff. Current initiatives have attracted $120 million in funding; including more federal funding than is awarded to any other pediatric facility.

In July 1999, MedAssets was chosen as the Decision Support vendor for Children’s Hospital Boston. The primary goal for the staff at the time was an understanding of the important relationship between service line performance and payor performance. Their challenge was to address operating losses with an understanding of how their resources were being re-invested in various research and clinical initiatives. Executive management was eager for data in a believable format for their staff physicians, researchers and nurse managers.


Solution

The Revenue Management group used Alliance Decision Support data to realign and renegotiate their contracted rates and to pursue governmental changes based on their improved knowledge of their cost structure.


Results

Due in part to these efforts, Children’s Hospital Boston has seen a significant improvement to their operating margin! As they grow and expand into the suburban areas of Boston, they used Alliance data to evaluate service lines and cost structure for a new satellite facility in Waltham.

Using MedAssets Alliance solution, The Decision Support Department at Children’s Boston has teamed with their Patient Safety and Quality Program to measure the cost of providing a successful cure and to evaluate the relative efficiency of quality health care services.

Alliance has a growing impact at Children’s in their marketing, governmental affairs, managed care, patient safety and quality and decision support departments. Children’s Boston continues to raise their already high standard of patient care, confirming their 130–year ongoing commitment to providing the very best in pediatric medical care and research.

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