The Challenge: Expense Management
Supply side operating strategy map example.
1. Measure progress
1.1. Benchmarking tools
1.2. Personal best strategy (improve on historical performance)
2. Move the demand curve
3. Move the supply curve
3.1. Change input prices
3.1.1. Reduce expense (per stat or "unit of production")
3.1.1.1. Reduce fixed expense
3.1.1.1.1. Within span of control
3.1.1.1.2. Outside span of control
3.1.1.2. Reduce variable expense
3.1.1.2.1. Within span of control
3.1.1.2.2. Outside span of control
3.1.1.3. Expense Types
3.1.1.3.1. Operating
3.1.1.3.2. Non-operating
3.2. Change conditions for production
3.2.1. Increase throughput
3.2.1.1. Real estate
3.2.1.1.1. Properties
3.2.1.1.2. Facilities
3.2.2. Invest in quality and value-based care
3.3. Leverage technology and automation
3.3.1. Enhance data analytics and intelligence
3.4. Change product or service taxes/regulations
3.5. Expand and diversify revenue streams
3.5.1. Increase volume
3.5.1.1. Growth plan to increase volume
3.5.1.1.1. Service line profitability focus
3.5.1.1.2. Surgical services focus
3.5.1.1.3. Inpatient services focus
3.5.1.1.4. Primary access strategy
3.5.1.1.5. Primary referral source strategy
3.5.1.2. Improve service mix
3.5.1.2.1. Focus growth strategy on inpatient rather than outpatient services
3.5.1.2.2. Focus growth strategy on surgical rather than medical services
3.5.1.2.3. Prioritize strategies that grow inpatient surgical services
3.5.2. Prioritize volume mix mix (e.g. inpatient vs. outpatient, medical vs. surgical, etc.)
3.5.2.1. Increase inpatient discharges as a percentage of total discharges
3.5.2.2. Decrease outpatient discharges as a percentage of total discharges