Scripps Health Adjusts Management Structure To Streamline Processes

On Wednesday, San Diego-based Scripps Health announced that it has implemented a new horizontal co-management model intended to better standardize performance, cut costs and preserve jobs in the wake of health care reform, Modern Healthcare reports (Rhea, Modern Healthcare, 10/20).

New Management Structure

The new structure -- which the organization adopted on Oct. 1 under new Medicare reimbursement rules -- divides the system into four separately managed operational divisions:

• Corporate Medical Division;
• Clinical Operations Division;
• Support Services Division; and
• Administrative Services Division.

Leaders in each division have begun to identify unnecessary variation throughout the system, including variations in staffing, practice, use of supplies, patient quality and physician satisfaction. Executives hope to replace variations in the system with standardized best practices from within Scripps and from other health systems.

Eye on Cutting Costs

A preliminary audit suggests that Scripps could reduce spending by about $150 million annually by eliminating variation under the new structure. Potential savings range from $6 million to $12 million on clinical laboratory functions, $4.3 million on cardiac surgery programs and $200,000 on coffee vendors.

Scripps officials say the system is working to extend the new structure to its 2,500 affiliated physicians, as part of laying the groundwork for new models in the wake of health reform (Commins, HealthLeaders Media, 10/21).