Neosho Memorial Regional Medical Center

At some time between the phone call from a hospital in Australia and being named a finalists in the Kansas Governor's Award of Excellence (along with Frito Lay), this rural hospital staff realized their efforts were gaining a lot of attention. In Studer terms, quite simply, the flywheel was turning at Neosho Memorial Regional Medical Center in Chanute, Kansas.

For the second year in a row, Neosho Memorial received the Studer Group's Health Care Organization of the Month Award (formerly called the Fire Starter Award.) The facility was also ranked for the second time as one of the Best Places to Work in Healthcare by Modern Healthcare magazine and was the runner up for the national "Spirit of Excellence Award" in the service category behind UC Davis Health System.

Neosho Memorial has applied Studer principles and techniques, fine-tuning them to fit this 25-bed critical access hospital. From room service to valet parking to an award winning fall reduction program, Neosho Memorial staff strive to bring the B.E.S.T. care to patients in southeast Kansas. And, at NMRMC, B.E.S.T. stands for Bringing Excellence and Service Together.

Each and every day, medical center employees understand that it takes the best employees to create the best medical facilities for our families, our neighbors and the physicians who serve them. Four mandatory, town hall meetings each year help keep everyone focused and motivated on each of our Pillar goals. And when goals are met, employees, patients and the community benefit.

For example, in a year of recession, Neosho Memorial added 12 new positions, had 75 employees volunteer to work on service teams and had 10 quality committees, all focused on ideal patient care. The importance of remaining fiscally strong to provide quality jobs within the community and even higher quality patient care was another strong element in keeping the flywheel turning.

Since 2006, Neosho Memorial has invested training, time and talent in hardwiring Studer Principles. The following results are the reason why other hospitals are calling.

• In 2010, Neosho Memorial potentially retained $2.7 million in part to high patient satisfaction scores based upon the 2010 inpatient revenue of $27 million. As published by Press Ganey and Associates, poor customer service can result in a 10% loss in revenue.

• A potential savings of $506,000 was realized by reducing patient falls by 23. Nationally, $22,000 is the estimated cost of a single patient fall.

• The financial impact of increasing the Flu Vaccine Rate to 99.5% saves a potential $25,920 per year based upon an estimate of 27 employees avoiding a 3-day absence from the flu and hiring another person to replace the health professional.

• By keeping UTI infection rates low, NMRMC improved patient care and saved patients and the hospital between an estimated $21,000 to $98,000. (Infection Rates nationally are 2.0% - 5.0% with Neosho Memorial's rate standing at 0.1% for 2009 and 0.6% for 2010. The National Device Associated Infection Rate is 5% with NMRMC's rate standing at 1%. An article in the Annuals of Internal Medicine 2010 reported that the cost of one UTI ranged between $600 and $2,800.)

• Average daily revenue averaged approximately $215,000 in 2010. By reducing A/R seven days, cash flow increased $1.5 million. A shorter average collection period means the hospital has greater cash flow to use in the provision of patient care and the funding of new equipment and infrastructure.

• Reducing employee turnover potentially saved $1,173,952. (This is based upon national HR rules calculating the cost of hiring at 2 times the average salary of the terminated employee ($70,720). In 2010, NMRMC realized an 8.3% drop in employee turnover -- 8.3% reduction x 70,720 x 2 = $1,173,952.)