Labor Savings and Volume Growth for Midwest Hospital

Download PDF »


The 325-bed flagship hospital of a Midwest regional health system found that most departments were operating unfavorably to the 50th percentile compared to labor productivity benchmarks. In order to better position itself in the marketplace, the hospital needed to manage labor resources more efficiently.


The hospital and Prism assessed and implemented more than 150 hospital-wide labor improvements. The project team worked directly with department leadership to develop process changes, refine staffing plans, review skill mix and deploy flexing tools to reduce labor costs. Prism also worked with hospital leadership and support departments to monitor outcomes, refine productivity and position review processes, and hardwire improvements into the budgeting process. The project delivered staffing reductions through reassignment and attrition, without any involuntary lay-offs. Department labor productivity shifted to the majority of departments running favorably to the 50th percentile, with approximately half of departments exceeding the 35th percentile.

“Prism helped our hospital reduce paid full time equivalents by 5.4%, without layoffs, during a period of significant volume growth.”

Hospital President

Connect With an Expert

Mukesh Gangwal

Managing Director

Learn More

Jonathan List

Managing Director

Learn More