Many hospitals and health systems today face the same problems they did two or three decades ago: Their margin improvement efforts result in only incremental improvements, and they lack a reliable way to sustain it.

For margin improvement to succeed, “nipping around the edges” is no longer sufficient. Hospital operators have to link financial improvement strategies to their core business: patient care. With a focus on clinical redesign, margin improvement is elevated from a siloed goal to a data-driven strategy that yields a positive impact on the overall business while redesigning the clinical operating model to function more effectively.

This paper presents the four keys to success in designing an effective margin improvement strategy that weaves itself into the fabric of the operating model.

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