Consulting Example: Cutting Overtime Costs at a Hospital
Cutting Overtime Costs at a Hospital
- A hospital was facing budget pressure from high and steadily growing overtime costs.
- We came up with a few hypotheses about the root causes of the overtime and then dug into the time and attendance data to test them.
- We found a link between use of sick leave and resulting need for overtime to fill the gap in coverage.
- Once management saw this, they were able to focus on enforcing existing overtime policies.
- With this insight, management was able to cut overtime by 46%, saving $3 million per year.
To see more details on this case, you can read our blog entry on the methodology we used.
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