Labor Cost Improvement Case Study for AdventHealth

This case study details the collaboration between AdventHealth West Florida and Impact Advisors aimed at improving labor costs. The executive leadership team at AdventHealth sought to enhance operational efficiency, particularly in labor management, despite already strong financial performance. The partnership focused on achieving a target of $32 million in annual recurring improvement based on Labor Cost per Adjusted Discharge over a 12-month period. The Impact Advisors team utilized a human-centered approach, emphasizing realistic goal-setting, clear communication, and open feedback. They introduced the OPTIX labor reporting system to empower staff and established performance targets based on cost-effective staffing figures. The program included training for managers and bi-weekly productivity huddles to address staffing variances. As a result of these efforts, AdventHealth achieved a $36.9 million savings, representing a 13.4% improvement over the previous year, marking their best year ever in labor cost management.