Assisting a Major Academic Medical Center

Norris FSG, recently assisted a major academic medical center to restructure the finance departments after severing long term ties with a national management company. Revising financial statement presentations, starting up a decision support department from scratch, installing automated budgeting and reporting system, installing managed care payment predictive software, setting the parameters for a $35 million bottom line improvement project and assisting in the recruitment process was among the tasks successfully accomplished.

The Hospital operates approximately 530 beds and produces approximately $500Million in net revenue annually.Outpatient activities consist of about 25% of total Net Revenue. The hospital hired a new CEO in August and Norris FSG was brought in a few months later.   The new CEO’s priorities included building a finance department that would be able to provide meaningful analysis and projections for the facility. We began a decision support department in December that was able to quickly set up a data base form hospital data systems to provide insight into operations. Other priorities included gaining control over the services that the hospital purchased from the Medical Center, reducing the losses being incurred by the teaching clinics, updating the budget and reporting systems and developing a strategic plan for the future.  The plan was to identify services that were profitable and services that might need reducing, as well as costs that were in many places out of line with industry standards. Therefore a productivity reporting and monitoring system was needed.  Also, the hospital needed a closer working relationship with the Medical school to insure that goals for both were achieved.