Using OperationsAdvisor app, IDN saves $5M+ Last Updated: July 24, 2014
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Frederick Memorial Hospital (FMH) is flagship of the Frederick Memorial Healthcare System; it includes 20 other facilities, physician practices, immediate care and a wellness center. Designated by Frederick Magazine as one of the top 10 family friendly employers in Frederick County, FMH offers the latest advances in diagnostic capabilities and state-of-the-art treatment as well as education in healthy lifestyle choices and disease prevention.


The recent economic downturn has exacerbated the significant challenges all hospitals face in operating profitably and efficiently using all resources, particularly human resources, the largest single expense. FMH had used an internal productivity system; management was not convinced the organization was operating as efficiently as possible.


  • Chose Premier’s OperationsAdvisor® application to address its labor management issues.
  • Premier Performance Partner Program to provide six days per month consulting services to develop, refine and manage labor management program; minimum goal: $500,000 in savings or cost avoidance.
  • Help install OperationsAdvisor comparative database and productivity tool to replace in-house system.
  • Serve as labor coach to managers, directors and senior leadership and support labor management team and benchmarking sub team.
  • Train and orient managers and directors to new tool and reports.
  • Monitor “watch lists”; help underperformers develop action plans.
  • Report departments with specific needs to senior leadership.
  • Incorporate labor benchmarks into FY10 labor budget process using OperationsAdvisor comparative database.


Combined efforts led to:

  • Successful implementation of new labor management program
  • Validated saving of $5,181,560 in FY09
  • Return on investment on Performance Partner of nearly 5-to-1
  • The new labor management program did not adversely affect employee morale. Ratings of staffing levels on the annual employee engagement survey improved; mean score was 3.39 on a five-point scale, nearly halfway between “somewhat” and “strongly” agree.