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Capacity Strategy: The Science of Improving Future Performance

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In these uncertain times, planning for the future is more difficult than ever. This is particularly applicable to the U.S. healthcare industry. Nearly 100% of hospitals and health systems are executing strategies to lower cost while improving quality of care delivered. Most experts would agree that among the priorities that rise to the top of any cost-reduction platform is increased operational efficiency. However, many of the organizations grappling with this challenge fail to recognize the impact that inadequate capacity management can have. Much of the struggle stems from reactive management of patient flow rather than a proactive approach, along with a lack of understanding how changes in one area impact another. Without a formal strategy for maximizing capacity, it is difficult to quantify and prioritize the initiatives that will have the greatest impact in taking cost out of a system.


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