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Case Study: Acute Healthcare

Acute, Multi-Site Healthcare Provider in the South East

Appointed interim turnaround director working with a Kingsgate turnaround team to deliver substantial turnaround

Background

  • Multi-site Trust
  • £19.5m deficit 2005/06
  • Already efficient – 108% to 94% of national average in three years
  • Funded by lowest funded PCT in England

Kingsgate’s strategy

  • Phase 1 – Matrix approach
    The Kingsgate team adopted a matrix-style approach to achieve grip over the organisation at various levels as well as ensuring accountability of all key functions for delivery of the turnaround plan. This was achieved through:

    • Speed
    • Focus
    • Accountability
    • Simplicity
    • Communication
    • Buy-in
  • Phase 2 – Major productivity drive
    To deliver such an ambitious and large-scale plan, we embarked on a significant and large-scale productivity drive, the success of which was crucial to the overall achievement of the CIP target and wider turnaround of the Trust. Broadly, this involved:

    • 300 projects
    • 600 job losses
    • 160 bed closures
    • 31 theatre lists per week reduction
    • Reduction of 70 outpatient clinics
    • Service remodelling and organisational change
    • Administration and clerical review

Key issues and requirements

  • Reduce 2006/07 costs by £33 million in-year, £40 million full year

Results and achievements

  • Cost savings over-achieved vs budget – £33m achieved in 2006/07 with a full year effect of £44m.
  • Other significant achievements as follows:
  • Length of stay reduced by 8%
  • 165 bed closures
  • Theatre Utilisation increased by 3%
  • Radiology tests reduced by 3%
  • Lab tests reduced by 3%
  • Theatre lists reduced by 10%
  • Theatre direct admissions increased by 5%
  • Outpatient clinics reduced by 31
  • WTE: March 2006 – 7800. March 2007 – 7030