To: Our employees and physicians
From : Mark Yamakawa, EVP/COO
Date: December 9, 2013
Aloha everyone,
Through November, QMC’s year to date operating income has fallen significantly short of budget. This is attributable to 3 major drivers that impact our revenue; increase in length of stay, shortfall in volume, and decline in Case Mix Index (CMI). We are nearly at the mid-point of the fiscal year so we must act swiftly to reverse this trend to meet our budgeted targets.
We earlier implemented initiatives to increase our capacity and throughput and have seen good results in ED volume; however, we have not seen corresponding results in other areas of the hospital. We will continue our efforts on capacity and throughput and will need to additionally target revenue enhancement, labor and benefits expenses, and non-labor and supplies expenses. Our initial focus will be:
- decreasing overtime/double time
- decreasing sitter usage
- decreasing discretionary spending such as catering, food and travel
- managing staffing by flexing to workload
- deferring or eliminating purchases of goods and services
We are also asking Staff, Managers, Directors, and Vice Presidents take 3 additional PTO days per month for the remainder of the fiscal year for those who are not replaced to maintain operations. Exceptions to this request will be made on a case by case basis by your Vice President to assure consistency.
We welcome your thoughts on specific or additional cost savings/revenue enhancement initiatives and ask you to contact your Vice President directly to share your ideas.
Thank you for your support and commitment to address this significant financial challenge.