Developing a Labor Management Program

1
Developing a Labor Management Program

• Kathleen A. Osborne, RN
• Vice President,
• Performance Improvement

2
About CHP!!

• 9 regions
• 35,000 employees
• 38 acute care sites
• Extends from Ohio to Tennessee and Indiana to
  Pennsylvania
• Six sponsoring organizations

3
Our journey

• Started with a largest region a CHP
• Parallel journey
• Build consistent definition
• Success builds momentum
• Recognize individual cultures
• Sponsor support
• Executive support

4
This is NOT rocket science

• Analysis
• Opportunity
• Establish Goals
• Plan
• Implement
• Monitor
• Continuous

5
Hows It Done?

• Internal Benchmarking
• External Benchmarking
• Operations Advisor
• Departmental structure
• Work/process redesign
• Standardization vs. Centralization
• Benefits Management
• Appetite Control
• Continuous monitoring
• Visionware

6
Initial Productivity Targets

• Targets/Goals
• Productive hours
• Variable Fixed components
• Internal Best Practice
• Top Quartile
• Everyone is included
• Unique needs
• Determined by Exec Team

7
1) Form completed by department manager per
cost center. 2) Interview with each department
Manager to review form. 3) Information is then
input into historical analysis.
8
(No Transcript)
9
Labor Management Concepts

• Goals are departmentally specific
• Focus support at the department leader level
• All labor has a component of variability
• including fixed overhead areas
• Consistent coaching
• Internal benchmarks first
• Consistent definition
• UOS
• Worked Hours
• Analysis based decision making

10
Education

• No one is born managing labor
• An acquired Skill
• Respect Department Managers knowledge
• OneOne
• Group Learning's

11
Executive Sponsor

• Accountable executive for the program (usually
  not the CFO)
• Understands the process
• Assists with prioritization
• breaks down barriers
• Rapidly aligns needed resources
• Gains support within executive team
• Defines reality

• Note CEO must set tone and establish executive
  sponsor

12
Building Accountability

• Monthly communication to executive team
• Summary information available Bi-weekly
• Routine department manager coaching
• 98 list
• Manual tracking
• Establish help line
• Integrated into position approval process
• Continuously evaluate targets to reflect
  operations
• Basis for labor budget projections

13
Attention to Detail

• Little Things Count
• Establish credibility
• Listen
• History and Culture
• Audit
• Verify
• Communicate frequently

14
Leadership

• Understand the reports and process
• Track performance daily
• Manage to expectation
• Maintain or improve quality
• Educate, inform, communicate
• Set the expectations and climate

15
Coach

• Available resource to assist department leaders
  to succeed
• Assists with needed process changes
• Helps establish improvement process
• Member of leadership team
• Experienced professional
• Operational background

16
Key Principles

• Executive Sponsorship
• Each level
• Define reality
• Provide Coaching Support
• Dedicated resource(s)
• Clearly defined goals
• Initial targets internal benchmarks
• Stretch targets
• Rapid implementation
• Translate to daily operations
• Variabilize fixed costs

17
Labor Management Process Moves throughout CHP

• Shared expertise among Catholic Healthcare
  Partners regions
• Shared commitment
• Catholic Healthcare Partners and local leadership
• Demonstrated success
• abbreviated time frames

18
Establish a baseline

• CHP driven initiative
• High level overview all 9 regions
• YTD November 2002
• Acute Care and Backoffices
• Managed resource model
• Kathleen Osborne, CHP Project Lead
• Premier served as a managed resource
• Comparative information source
• Operations Outlook
• Compared at department level with logical
  groupings

19
2002Identified Opportunity
20
(No Transcript)
21
MHP-Cincinnati
Acute Care
L-T Care
Anderson
Shared Services (Network Services)
Terrace
Schroder

• Patient Access
• Marketing
• Materials Management
• Mission Services
• Medical Staff Services
• Performance Improvement
• Facilities Planning
• PPO

Fairfield
Mt. Airy
West Park
St. Theresa

• Information Systems
• Human Resources
• Finance
• Patient Accounting
• Legal, Compliance, Risk
• Medical Records

Other Services
Clermont
Western Hills

• Home care
• Hospice
• HUD housing for the elderly
• Housing for poor families
• Social service agencies
• Behavioral health programs
• A foundation
• PHO

• Low-income apartments for active older adults
• 2 Centers for Health and Wellness
• 3 Healthplex fitness centers
• 2 O/P surgery centers
• Four Emmanuel units

22
The first years progress?
23
(No Transcript)
24
(No Transcript)
25
CHP Labor Expense Management
Employment Expense as a Percent of Total
Operating Revenue
Associate Productivity - Acute
26
2002 Identified Opportunity
27
2004Identified Opportunity
28
2005Identified Opportunity
29
2005Functional Summary
30
Clearly Communicated Goals

• Key Messages on Why and How
• Supported at every level
• Understandable metrics
• Not too many
• Consistent
• message
• application
• Honest
• Communicate using multiple methods/forums

31
What Allows for Success

• Department Managers
• This is where you expend Resources
• Coaching
• Education
• Time
• Support
• Executive Support
• Clearly Communicated Goals
• Measurable Goals
• Attention to Detail
• Rapid Response

32
Meeting Goals

• !!!Coaching!!!
• Multiple levels
• Department Manager/Director
• Vice President
• Executive
• Routine
• Consistent

33
What to remember!
Managing labor to the right metrics can help
prevent layoffs and ensure the preservation of
our mission. This is just another skill set to
allow management to be successful in todays
complex healthcare environment. Kathleen
Osborne
34
Questions?