Targeted Margin Improvement

Stop Guessing – Start Fixing Hospital Margins

Using Millwood’s Margin Insight process, we diagnose your eroding hospital margins and address root causes to improve your financial performance.

Our team provides insight and expertise to achieve sustainable margin improvements that last. By fixing things that are broken, rather than cutting costs haphazardly, leaders can best ensure continuity of their organization's mission into the future.

What We Do

Using our proprietary algorithms, we group your inpatient and outpatient services into meaningful service lines, identify clinical services which are generating losses as well as your most successful services, and provide visibility necessary to improving margin.

Using our years of industry knowledge and our Tweaking the Equation playbook, we lead thoughtful data-driven discussions to convert information into action.

Our Approach

We have a holistic approach to margin improvement with integrated financial, operational, and clinical data to accurately inform decisions and effectively execute.

We:

  • Unify your raw data across multiple systems

  • Categorize your inpatient business into inpatient DRG groups (Millwood30 & Millwood150)

  • Segment your outpatient business into similar treatment, payment and referral sources, making the groupings useful for outpatient service line planning & tracking (“Millwood outpatient groups”)

  • Integrate your internal cost accounting data if available, or utilize Millwood’s cost accounting methodology, to determine the direct cost per case/visit

  • Make profitability visible at the individual patient and service line level

  • Diagnosis margin-eroding service lines

  • Adjust the “equation” for the least profitable services

    • Good volumes versus bad volumes

    • High-cost inputs

    • Underpayment opportunities

  • Identify growth opportunities for most successful services

  • Predict the change impact

  • Implement unique & proven solutions

  • Ensure sustainability plan is in place to ensure long-term success (maintaining the gains)

We don’t:

Focus on staff reductions, which often don’t produce lasting results.

With the right insights, targeted actions, and sustainable governance structure, you can restore your financial strength and serve your communities and mission for years to come.