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Case Study: A Not for Profit Healthcare System

Case Study: A Not for Profit Healthcare System

Employee ideas lead to millions in cost savings and process improvements.

Situation

This major healthcare provider needed to address their shrinking margins. Top-down cost reduction initiatives had proven ineffective and existing recognition programs were not meeting business needs. An internal satisfaction survey suggested that employees wanted more involvement in decision making. The client believed that involving employees and fostering teamwork could be a better approach to improving financial results and solving problems. In addition, this program has become a key component in the client’s integrated approach to organizational performance management and in their quest toward Baldridge recognition at the national level.

Solution

Maritz worked with the client to design a program that would recognize and reward employees for suggested performance and process improvements. The program, now in its seventh year, gives 7,000 employees and volunteers across multiple channels (flagship hospital, 5 regional hospitals, health plan, medical group practices, ambulance group and home health agency) the opportunity to submit ideas for improvements. After conducting a system-wide assessment of the current environment and existing process, Maritz implemented a web-based suggestion process that includes:

Design, development, support and maintenance of program custom web site.
Print and intranet communications campaigns.
Management orientation and just-in-time tools.
A comprehensive PC-based tracking and feedback system with monthly targets and reporting.
Targeted non-cash awards linked to behaviors and results for all participants.
Inclusion of national Malcolm Baldridge Award for Quality criteria in the year four program re-design.
Support for existing recognition initiatives with print communications and common award medium.

Results

Program intranet site developed, and over 95 percent of submittals, evaluations, and idea processing completed online.
Cumulative implemented savings to date over $13.5 million.
Total ideas submitted cumulative to date over 6,000.
Program in seventh year of operation.