-Cost Reduction and Revenue Optimization-
Japanese Red Cross Ise Hospital (Mie Prefecture, 655 beds)

Backgrounds and Objectives

Japanese Red Cross Ise Hospital (hereafter JRC Ise Hospital) was established in 1904 as the first hospital under the Japanese Red Cross Society. With over a century of history as an emergency medicine and acute care provider, JRC Ise Hospital is also the sole provider of emergency care along the Shima Peninsular.

After relocating to a new facility in 2012, JRC Ise Hospital started experiencing a fiscal decline due to the depreciation costs involved in the relocation, despite the boons of highly advanced facilities such as intraoperative MRI scans and helipads for Doctor Heli emergency medical services. To prevent further prolongment of the decline, Dr. Tsukasa Kusuda, Director of JRC Ise Hospital, approached GHC to turn the hospital’s financial situation around.

Methodology

GHC conducted a year-long consulting engagement, primarily doing a deep dive benchmarking analysis with specific focus on the type and volume of drugs administered, as well as the various hospital bonuses that can be rightfully claimed as part of medical remuneration with appropriate record-keeping and billings.

By working in close collaboration with the administration team and doctors to review each treatment pathway and resources utilized in the process, GHC consultants were able to help JRC Ise Hospital seek out cost effective drug options and ensure thoroughness in the record and billing of relevant procedures.

Outcomes

150m JPY (approximately 1.5m USD) worth of cost savings were attained in a year as a result of changes made to drug prescription choices, benchmarked against other acute care hospitals in Japan.

JRC Ise Hospital was also able to bring its fiscal situation back in the black with simultaneous efforts in maximizing remuneration through systematic billing and uniformed practices throughout the various clinical and administrative departments.