Annual Goals To Achieve Cost Savings

I often tell my clients that their cost savings cycles should be in 12-week sprints.

Let me explain why.

I recently read a book entitled “The 12 Week Year: Get More Done In 12 Weeks Than Others Do in 12 Months.“

Reading this book inspired us to create our methodology around cost savings cycles.

Your hospital’s cost savings cycles should be in 12-week sprints for maximum effect.

All health systems have annual goals to achieve cost savings.

But most hospitals reach Quarter 3 or sometimes Quarter 4 and they’re not close to achieving even half of their cost savings goal.

That puts huge pressure on them to try and meet their targets by year-end.

At VIE Healthcare®, we see this pattern a lot.

Working in 12-week sprints breaks that cycle and creates a more effective one.

At the end of each 12 week period, you take a week before beginning the next cycle.  

During those 12 weeks, we focus on specific cost savings opportunities to create a sense of urgency and precision.

CFOs and supply chain leaders love the process we implement for them.

If you start a 12-week cycle in January, all of a sudden you’ve achieved 25% or even 30% of your annualized goal.

We keep running these cost savings sprints because we know it works for hospitals.

It’s a more natural way to run this race and deliver margin improvement.

Every health system needs a cost savings strategy linked to a bold vision for its future.

That vision becomes reality when you declare the precise amount of annual savings your hospital needs to operate and set out to create a strategy to implement it.

That’s where VIE Healthcare® can help.

If you’d like to learn more about our 12-week cost cycles and what they can achieve for your hospital, reach out to me.

Reach out at lmiller@spendmend.com to discuss your cost savings goals and how we can support and accelerate cost savings opportunities in your organization.