Burlington-based Applied Management Systems’ Labor Benchmarking Study Leads to Best Practice Incentive Plan

Applied Management Systems, Inc., (AMS) a full-service health care management consulting firm in Burlington, Mass., recently assisted Providence, R.I.-based Care New England Health System (CNE) in identifying staffing benchmarks to streamline its health care service delivery throughout southeastern New England.

CNE history

Formed in 1996, CNE consists of founding members Butler Hospital, Kent Hospital and Women & Infants Hospital of Rhode Island, as well as partner hospitals and agencies including VNA of Care New England, HealthTouch, Inc. and the Care New England Wellness Center. With a combined total of 6,880 employees and 1,193 active medical staff, the organization’s broad spectrum of services includes primary and secondary acute care, health care for women and newborns, behavioral health and substance abuse, home health, hospice, private duty nursing, rehabilitation, wellness, fitness and educational programs.

In addition, CNE is dedicated to the advancement of medical education and research. Butler Hospital serves as the principal teaching affiliate for psychiatry and human behavior for Brown Medical School in Providence; Women & Infants Hospital of Rhode Island is Brown’s primary affiliate in obstetrics, gynecology and newborn pediatrics; and Kent Hospital is affiliated with the University of New England College of Osteopathic Medicine in Biddeford and Portland, Maine.

Project background

AMS conducted its first labor benchmarking review for CNE in 2011, providing the senior management team with staffing figures for all cost centers. Recognizing that the existing culture and organizational behavior varied among the various operating units, CNE took a proactive approach in providing consistent training and education.

In 2012, more than 300 managers attended 17 sessions of the seminar “Moving Toward Operational Excellence,” at which presenters included CNE President and Chief Executive Officer Dennis D. Keefe and Senior Vice President and Chief Financial Officer Jack Sutherland.

Results

As a result of the comprehensive AMS labor resource benchmarking study completed in 2013, the AMS “best practice” staffing targets have been the goal for all cost center managers. To date, that goal is being realized by promoting early retirement programs, managing vacancies and other strategies.

But the key to success here has been CNE senior management creating an incentive plan through which rewards are generated based on organization-wide success, rather than individual cost center achievements. The result, according to Keefe, is a spirit of cooperation and team unity that extends to other areas of the organization.

“In our work with more than 200 hospitals, CNE is our first client that has tied its manager incentive plan to the best practice range,” noted Alan Goldberg, partner and president of AMS.

“We appreciate the thoroughness and overall professionalism demonstrated by AMS in helping us identify ways in which we can continue to streamline our operations,” Keefe added. “As a result, CNE is well positioned to transition into the new era of health care delivery while maintaining our high-quality continuum of care.”

For more information, call Goldberg at (781) 272-8001 or visit www.aboutams.com.

About Applied Management Systems, Inc.