Carolinas HealthCare System Uses Operational Solutions to Restructure Operations at Wallace Thomson Hospital and Save the Institution $1.4 Million

• 12 May 2009

Carolinas HealthCare System (CHS), the largest healthcare system in the Carolinas and one of the largest public non-profit healthcare systems in the nation, took over management of the Wallace Thomson Hospital located in Union, South Carolina, in August of 2006. In addition to being located in an economically depressed area with intense healthcare competition, Wallace Thomson Hospital faced a dwindling market share, a shrinking physician staff, and falling admissions. The average length of stay was too long and the hospital’s ability to fund debt service requirements was significantly threatened.

Consequently, Wallace Thomson Hospital’s financials were dismal with an actual net operating margin for July 2006 year-to-date at negative 18 percent, compared to negative 1 percent the prior year.

To get the hospital back on track, CHS’s strategy was to develop and guide the implementation of a Management Action Plan (MAP). The objectives of the MAP included providing a road map for revamping and restructuring operations at Wallace Thomson Hospital, and making recommendations for immediate operational enhancements, as well as some long- and short-term strategic planning. One of CHS Management Company’s tasks was to evaluate productivity using Thomson Healthcare Operational and Financial Solutions.

To begin the process of developing the MAP, CHS needed to evaluate the hospital’s current productivity. The organization decided to employ ACTION O-I®, since CHS had used this solution for the last 10 years.