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How to assess the impact on production, capacity, and costs after the closing of a hospital

How to assess the impact on production, capacity, and costs after the closing of a hospital

About the client

OLVG is a hospital in the greater Amsterdam area, with locations in the East and West. It has been at the heart of the city’s healthcare for over a century and a half, playing a central role in improving care and contributing to healthier living in the urban landscape of Amsterdam.

LOGEX and OLVG have been working together for over ten years. LOGEX was a key partner in providing the clarity OLVG needed to make critical decisions when merging with Sint Lucas Andreas Hospital in 2015.

The challenge

In 2018, MC Slotervaart, another city hospital in Amsterdam, was on the edge of closure. OLVG considered taking over a large part of the care and was asked to step in to safeguard the continuation of care and turned to LOGEX to assess the potential impact on OLVG’s capacity accurately, revenues and costs.

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Our solution

During the high-intensity run-up to MC Slotervaart’s closing, we ran multiple scenarios with the OLVG team to assess the potential impact accurately. LOGEX’s activity-based management methodology gave OLVG the clarity needed to quantify the additional resources required per department—number of clinicians, nurses, and other personnel —and help OLVG guarantee uninterrupted care delivery in Amsterdam.

LOGEX Financial Analytics enabled OLVG to make data-driven decisions leading to the partial takeover continuation of MC Slotervaart’s care by delivering accurate, reliable information, including complex decisions on investments, prices, and required guarantees. In addition, leaning on insights from LOGEX Financial Analytics, OLVG accomplished multiple negotiations with payers (insurers), regulators, and the municipality of Amsterdam in a short time.

Our Impact

With the insights drawn from LOGEX Financial Analytics, OLVG was able to:

  • Quantify required additional resources and record them in an adjusted budget
  • Monitor additional care based on patient characteristics using our Forecasting model
  • Measure performance against targets and plans across the hospital from the board level down to the ward level, using our Budgeting model
  • Identify and take action on specific opportunities for efficiency
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