Client case studies | Organizational transformation

A large healthcare system needed a new centralized organization to streamline its finance operations and lower costs for its member hospitals.

A large healthcare system was going through the process of establishing a corporate organization to serve several of its hospitals, some of which had recently joined the system through acquisition. One phase of the initiative was to streamline back office functions such as finance, budgeting and reporting.

It would clearly take a significant amount of effort to create a corporate structure that would result in both better patient experiences and lower costs. Getting the approval and cooperation of the staff and leadership at several, formerly independent hospitals would be an additional challenge.

PwC was invited by the CFO and other senior executives to tackle the organizational design project. Our core team, with skills in change and talent management, healthcare, treasury, tax and technology, did not arrive with a pre-determined cookie cutter solution in mind. We validated the savings projected by the client if some of the key operational areas were reorganized—focusing on identifying overlaps, inefficiencies and potential synergies across functions, capabilities and roles. We then worked with senior leadership to design a new governance structure, redesign core leadership and management roles and find the best-fit change approach for their unique scenario.

This healthcare client ultimately saved $1.5 million (on an annual basis), $400,000 of which was immediately reinvested in staff education and training. Morale across the redesigned functions is greatly improved, and the benefits of the newly streamlined operation are felt throughout the client. Today, with a more centralized and standardized business model, the healthcare system is better positioned financially and organizationally for future growth.

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