Case Studies

West Middlesex University Hospital NHS Trust

Business challenge – what was driving the need for change at WMUH?

A recurrent financial deficit meant that a key primary target (to break even) was not being met. The future of the Trust is at risk if the organisation is not financially stable/viable

How did you go about addressing the problem/challenge?

Attempting to understand the underlying nature of the deficit was the key;

Repeated internal analysis
External consultancy brought in

Improving the financial position:

Generation of additional income
Cost improvement schemes and savings programmes

Solution – what did the ‘solution' look like?

We had a reasonable understanding of where we were making losses, but working with Healthcost and their patient level cost/income calculation system ‘ComboCC' aided us in seeing why we were making those losses in particular areas. This gave us the business intelligence to focus and drive change in the right areas, minimise waste and help to improve efficiency.

Critical Success Factors – what were key lessons learned in making it work?

Improving data quality is a critical factor for the output of robust and meaningful cost/income information. This isn't necessarily a quick process but definitely an essential one.
There is also a need for the intelligent use of the information within the organisation:

Clinical ownership of activity allows clinicians to be the drivers of change;
Using clinical champions helps to sell PLC/SLR to their colleagues;
Emphasis on positives in addition to improving the negatives is an important part of the process.

Results – what was the outcome? What benefits were gained?

A greater degree of understanding between finance and clinical staff is being achieved because we can now analyse below the HRG level.
Better informed decisions can now be made on areas for investment/de-investment
Services are now costed to a very high degree of accuracy.The quality of our outputs helps to support stronger arguments with commissioners and the derivation of local tariff information.

Case Study Contact

Name: Mauli Hewavitarne
Position: Cost Accountant
Authority: WestMiddlesexUniversityHospital NHS Trust
Telephone: 020 8321 5534
Email: mauli.hewavitarne@wmuh.nhs.uk

We chose Healthcost for their experience within the NHS and a much longer history of delivering quality results in various international healthcare systems. Within two months we were able to demonstrate a detailed cost allocation for each patient. Thus far, Healthcost have exceeded our expectations.

Dr. Gareth Goodier, CEO Cambridge University Hospitals NHS Foundation Trust (Addenbrooke's)