Dimension of Care: Operational Effectiveness

Our Staffing Best Practices initiative ensures hospital staffing levels are appropriate for the number of patients we’re serving.

Operational Effectiveness

Our Patients Benefit from More Affordable Care.

Cost can be a barrier to patients who need care. That’s why Intermountain has always worked to keep our rates as low as possible while still sufficient to enable us to continue serving effectively.

We have a two-pronged approach to cost management:

  1. First, we focus on quality improvement. In healthcare, higher quality tends to cost less, because patients usually experience fewer complications, readmissions, and other issues requiring additional care. So Intermountain works to continually improve quality and provide care that is proven to be most effective, based on the best medical evidence. Our Clinical Programs and Services are a platform for our clinical quality improvement initiatives.
  2. Second, we focus on operational effectiveness. We reduce costs by operating as efficiently as possible—and we pass these cost-savings along to those we serve. One example is our Supply Chain Organization, which reduces costs by specifying, purchasing, and distributing supplies wisely, as well as by more effectively providing a range of support services. It saved an estimated $55 million in 2012. Another example is our Staffing Best Practices initiative, which ensures our hospitals are staffed appropriately to care for varying numbers of patients.

Intermountain Healthcare Financial Summary

(Dollars in Millions)

FUNDS AVAILABLE 2012 2011
PATIENT SERVICES AND NON-PATIENT ACTIVITIES:
Net patient services, including inpatient and outpatient care, pharmaceuticals, and supplies; net of discounts provided for patients covered by Medicare, Medicaid, and other sources because these agencies have limited their level of payment $3,764.3    $3,577.3  
Charity services to qualifying patients unable to pay as part of our ongoing community commitment (252.5)* (276.8) 
Bad debts for services provided to patients who were unwilling to pay (206.8)   (193.0) 
Non-patient activities, including health insurance premiums, contributions, and other resources 1,395.3    1,393.1  
Non-operating income from investing activities 218.4    19.9  
TOTAL FUNDS AVAILABLE $4,918.7   $4,520.5 
FUNDS APPLIED
Salaries and benefits to our employees $2,110.3   $1,984.0  
Medical supplies and services 1,297.5   1,266.7  
Business services, insurance, utilities, and cost of facility maintenance 589.2   535.0  
Depreciation and amortization cost for this year’s use of buildings and equipment 236.9   219.8  
Interest on borrowed funds 49.0   48.8  
Increase in funds available for future needs to replace and improve health facilities, technology, and services 635.8   466.2  
TOTAL FUNDS APPLIED $4,918.7  $4,520.5 

* This figure represents Intermountain’s unadjusted total.
The total adjusted charity care based on standards established by the Utah State Tax Commission is approximately $158.4 million.

Engaging All of Us in Healthcare
Chairman & CEO Message
Our Service Area
Dimension of Care: Clinical Excellence
Clinical Statistics
Dimension of Care: Patient Engagement
LiVe Well
Dimension of Care: Operational Effectiveness
Financial Summary
Board of Trustees
Dimension of Care: Physician Engagement
Intermountain Medical Group
Dimension of Care: Community Stewardship
Our Benefit to the Community
Community and School-Based Clinics
Dimension of Care: Employee Engagement
SelectHealth
Recognizing Excellence
Survey
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