How our LOGEX Financial Control Suite helps create a smoother budgeting and costing process at Erasmus MC

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 challenge

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

The solution

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. 

Financial Control

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. 

chevron_right Show key features
  • Costing
  • Budgeting
  • Forecasting

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.

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’s consultants made this project a success. We are super happy with our switch to LOGEX.

Mieke Moller – Manager Business Control – Erasmus MC, Rotterdam

Would you like to see for yourself how LOGEX can help you to gain control over your financial performance and turn your data into better healthcare?