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Mercy Medical Center: Community Hospital Turnaround

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Annual net revenue: $290 million

Engagement time frame: 2013–present

A mid-size community hospital, which is part of a larger health system, had incurred operating losses annually for three consecutive years. The average length of stay was high. Other consulting companies had been engaged previously with limited results. While traditional approaches to reducing expenses and improving revenue were important to the client, they realized that engaging the medical staff would be required to transform the organization. BRG led a comprehensive performance improvement engagement focused on improving patient throughput, revenue cycle performance, and clinical documentation; and reducing length of stay and labor and non-labor costs. The engagement is nearing the end of the implementation phase, with more than $20 million in annual recurring improvements on track to be achieved. 

  • Positive operating margins for nine consecutive months
  • Length of stay has been down for twelve consecutive months

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