Hospital Cost Reduction

Reduced procedure costs across four-hospital system

A four-hospital system sought to reduce overall procedure costs. Facing impending bundled Medicare payments, the system lacked understanding of the cost per case and per physician.


  • Linked disparate systems ad developed database to capture cost by surgeon and by surgery type
  • Worked with Physician Champions to determine areas of potential savings
  • Opened savings discovery process to all surgeons, focusing on the hospitals’ highest volume and cost areas
  • Renegotiated with suppliers, achieving significant cost reductions
  • Aligned stakeholders to eliminate surgeon activities that drove cost overruns

Results: Achieved $16MM in cost reductions.

Kormac Results - Achieved $12MM in initial cost reductions, first two practice areas - Reduced costs by $4MM more through improved scheduling - Optimized staff participation and scheduling, operating room nursing and support staff. CS231