Smoother costing and budgeting process at Erasmus MC with the LOGEX Financial Control Suite
About the collaboration
LOGEX collaborated with the largest hospital in the Netherlands, Erasmus MC, in upgrading them to the LOGEX Costing solution. A year later, Erasmus MC already sees the benefits of the integrated LOGEX Financial Control Suite by leveraging their unit cost to the Budgeting and Forecasting solutions.
The costing system of Erasmus MC was ready for an upgrade, as the system didn’t meet the organisation’s requirements. The older version was centrally maintained, giving the risk of being dependent on the knowledge of specific people within the organisation as the only point of contact. The department managers and clinicians had no access to the system, and it was very challenging to explain the cost built-up and results. As a result, the unit cost was only delivered to the regulator and not applied in practice, and the value of information could not be used in the budgeting and forecasting process within Erasmus MC. Furthermore, contracting discussions with payers resulted in a changing portfolio of healthcare which they needed to reflect in budgets per specialty and department.
We wanted to objectively adjust future budgets per specialty and department, given changes in payer contracts and our portfolio.Mieke Moller – Manager Business Control – Erasmus MC in Rotterdam
In 2019 LOGEX helped Erasmus MC smoothly upgrade to the new Costing solution, creating more trust in the output. At the same time, Erasmus MC decentralized the process and heavily involved their department controllers. The solution also significantly improved the engagement of the clinicians. In addition, the strong foundation built in one year gave them the confidence to directly apply the unit cost in the budgeting process for 2021.
Later, in 2020, Erasmus MC fully integrated the output of the Costing solution in their budgeting process, applying activity-based-budgeting principles of the LOGEX Budgeting solution. Accounting for changes in portfolio and payer contracts, the solution helped Erasmus MC to objectively set their budget for 2021 and have much better data-driven discussions with over 40 controllers of all departments on their cost structure. In addition, the strong costing foundation and acceptance helped them successfully and smoothly embed this in the budgeting process.
From 2021 onwards, Erasmus MC will implement the LOGEX Forecasting solution to monitor and compare their activity-based budget to their actuals, allowing them to open discussions and make adjustments during the year rather than retrospectively.
Our Financial Control suite enables you to gain mastery over patient volumes, resources and finances for the entire organisation, leading to better financial performance—with the numbers to prove it.
We cover the full spectrum of financial and operational processes, from costing and budgeting to forecasting and contracting.
Our activity-based costing model empowers you to:
Simplify cost calculations
Make cost calculations for healthcare providers that are easy to understand, apply, and optimise.
Optimise resource allocation
Allocate resources and costs to patients, care activities and episodes.
Improve through benchmarking
Benchmark unit costs with national and international peers to identify areas for improvement.
Meet regulatory standards
Deliver information to national regulators automatically and in full compliance with National Cost Collection requirements.
Our activity-based budgeting model makes it possible to:
Build and benchmark budgets
Seamlessly link volumes, resources and finances in one budget.
Anticipate and respond to future demand
Match the deployment of resources and manpower to the future demand for care.
Zero in on areas for improvement
Determine how portfolio choices impact operations, and spot areas for improvement.
Involve physicians and managers in budgeting
Bottom-up budgeting functionality facilitates collaboration with non-financial stakeholders.
Our forecasting model enables you to:
Forecast and monitor volume, revenue and cost
Stay on top of expected vs. realised volumes, revenues and costs on a near real-time basis.
Analyse and factor risk into payer contracts
Automate value-at-risk calculations for all contractual agreements with commissioners.
Leverage machine learning algorithms
Build and maintain reliable, easy-to-access forecasts based on machine learning algorithms.
Produce timely, compliant reports with ease
Deliver periodic financial results that are fully compliant with national regulations.
Overall ease of use
Simple navigation with a full audit trail integrated analytics and benchmarking. No need for internal SQL skills. Costing practitioners and Trust colleagues can focus on engagement and identifying performance improvement opportunities
- Fully hosted and secure
- No need to rely on internal IT infrastructure and resources or invest in expensive infrastructure
- Integrated analytics so less reliance on Trust-wide BI infrastructure
- Unlimited use
- Full access control
- “Live” system enables use in meetings
- Fully inclusive annual subscription with no hidden extras
- All Technical Consulting support included
- Unlimited use included
- Analytics included
- Fast set up and model build
- Make changes live and use for discussion in meetings
NHSI submission requirements
- Easy visualisation of how your costs relate to NHSI categories
- Automated submission outputs
Fast turnaround with limited input required from the Trust team
More value from Costing data
- Use costing data and methodology for budgeting, forecasting, and costing care pathways
- Fully integrated financial management control platform
System working and benchmarking
- Easily configured to support group working
- Integrated benchmarking to identify performance improvement opportunities
Impact created with LOGEX Financial Control Suite
- More efficient and easy to maintain Costing update due to rule set up.
- The Costing solution is decentralized, so can be maintained by multiple members.
- Support for calculated unit costs and benchmarks with management and clinicians.
- Extra add-on possibilities: Budgeting and Forecasting solutions
The knowledge and practical approach of LOGEX supported make this project a success. We are super happy with our switch to LOGEX.Mieke Moller – Manager Business Control – Erasmus MC, Rotterdam