Using LOGEX Budgeting to get insights on costs and resources in Region Dalarna
About the client
Region Dalarna is Sweden’s fourth largest region by area (28,183 km² or 6 % of Sweden’s area, in size with Belgium). 3% (281,046) of Sweden’s population lives in Dalarna. Region Dalarna is the county’s largest employer, with just over 8,900 employees. Falu Lasarett “Hospital” is the county’s largest workplace, with approximately 3,600 employees. In Dalarna, 20% work in health and social care (one in three females).
The challenge
The Orthopaedics department in Region Dalarna had difficulty managing its healthcare deficit on hip and knee replacements due to a lack of connection to other parts of the financial processes. They used various spreadsheets, which left room for the calculations to be error-sensitive. Above that, not all healthcare activities were taken into account due to difficulties in calculations. Their budget was based on “old” data with limited activity or resource-based budgeting. Therefore it was difficult to determine the variable cost impact of changes in activity.
The department specifically wanted to answer the following questions:
- What will be the extra costs of doing the replacements in-house?
- Where will those costs fall?
- Which departments should get funding?
- Do they have the required resources for it? Where are the bottlenecks?
The solution
Budgeting & Capacity Management with LOGEX
LOGEX offered Region Dalarna to try out a budgeting / financial planning system linked to the costing system that allowed them to see variances and changes in costs, plan accordingly to get the most out of the available resources and adjust to actual needs.
We also added the application of scenario analytics and portfolio planning strategies to achieve better and more appropriate patient care.
As a result, the Implementation of Activity Based Budgeting (ABB) provided Dalarna for the first time an objective baseline concerning cost for different surgical activities and correlated activities (e.g. diagnostics), resources and costs.
At LOGEX, we understand that getting a grip on your data and performance should be a rewarding endeavour. Our models give you clarity and control over your operational and financial performance. Clarifying costs and optimising processes will be easier than ever.
The impact
- Elimination of scattered and non-cohesive Excel-based approach that previously led to errors and limited transparency. Now available in a fully integrated platform with ‘one source of truth’
- Increased engagement by cooperation and integration between controllers, clinical managers and clinicians grew and had a data-driven foundation as a starting point for discussions
- Scenario planning: Impact of shortening the length of stay for hip and knee replacements on WTEs and Finance leading to more effective use of internal resources
- For the first time, Dalarna had insights into the impact of surgical procedures on diagnostics and the -link with WTEs and Finance. The model showed that the X-ray was the bottleneck, enabling discussions on how to manage this.
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