Pirkanmaa Wellbeing Services County Trusts LOGEX’s Costing Solution
Mikko Hannola, Head of Financial Services at Pirkanmaa Wellbeing Services County, has been working with the LOGEX team since the early 2000s. This year, we collaborated to implement a cost calculation solution in this newly created Wellbeing Services County.
The Problem
Wellbeing services counties face significant financial challenges. Understanding costs at a detailed level is essential, particularly as they are required to provide services within the constraint of their available budget.
Besides for their own planning and pricing purposes, the wellbeing services counties also need information to accurately report their finances to various authorities, such as the Ministry of Finance. These reports require consistent data across counties to enable comparison.
The Solution
After implementing the LOGEX Costing solution, Pirkanmaa is now able to answer questions about production costs, cost optimisation, and outsourcing decisions, with ease.
Cost information is essential for rational decision-making. Without it, leaders might focus too much on individual expenses, like a single medicine or device, which may only account for a small portion of total costs.
Cost calculation also plays a key role in pricing. Wellbeing counties use this data to price their services and compare costs with outsourced services. This is relevant as the ageing population and workforce shortages in Finland are putting significant pressure on public healthcare. To address this, many services are outsourced to private providers, representing substantial expense. For instance, this amounts to €1.5 billion annually in Pirkanmaa, including materials.
The Impact
LOGEX’s Costing solution’s ability to adapt to different units, even with varying product structures, is a big advantage of this solution.
One other strength is its focus on healthcare-specific needs. Currently, LOGEX is the only provider capable of offering patient- and client-specific cost calculations for wellbeing services counties.
By continuing to refine our approach, LOGEX aims to provide patient level ie. PLICS calculations to Pirkanmaa Wellbeing County. This will enable deeper analysis, such as understanding the financial impact of structural changes, for example if elderly people start using more emergency services or wards due to the changes in their services
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