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Breaking the throughput plateau

4 strategies for reducing inpatient length of stay and avoidable admissions

A clinical and financial imperative

Across the last two decades, organizations reduced national length of stay by more than a full day. But recently those gains have stalled, with national length of stay hovering around 5.2 days for seven consecutive years.

Health care can no longer afford this stall. A 100-bed hospital can generate over $3 million annually by reducing a quarter of a day; a 500-bed hospital can generate $16.4 million. Beyond direct cost savings, eliminating bottlenecks also improves clinician experience, patient experience, and clinical outcomes.

It’s clear to many clinical executives that patient flow is once again a top priority. What’s less clear is how to continue making progress.



The conventional wisdom

Most organizations use acute care length of stay (LOS) as their measure of patient flow success. This measure translates into a decentralized flow strategy. Executives set LOS targets for local leaders, who develop a department-level flow strategy to meet their target.

This approach worked well for over a decade. But now that most organizations have achieved their department-level quick wins, the decentralized approach is failing to yield further gains, for two reasons.

First, siloed efforts by individual departments often don’t translate into a reduction of organizational length of stay. These individual efforts may inadvertently be in conflict with one another. Or it may be hard to identify (and prioritize) the department-level pain points that have the biggest impact on the broader organization.

Second, the traditional approach overlooks a major opportunity: reducing avoidable hospitalizations. Across the U.S., there’s an average of 49.4 discharges for ambulatory care-sensitive conditions per 1,000 Medicare enrollees. These inpatient days should be avoided altogether. But because of the focus on reducing length of stay, reducing avoidable hospitalizations hasn’t been a main goal of throughput efforts.

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