Navigant Partners to Provide Strategic Solutions for UAB Health Systems

University of Alabama at Birmingham Health System Achieves Cumulative Revenue Improvement of $125 Million

Challenge 

In 2014, the University of Alabama at Birmingham Health System (UABHS) was facing what many academic medical centers were anticipating — a potential reduction to clinical, educational, and research revenue at unprecedented levels. Challenges to Medicare payment reductions, value-based purchasing, increasing governmental and regulatory burdens, constraints to state funding, diminished philanthropy, and reduced indirect medical education payments were just a few of the looming concerns for administrators.

UABHS worked with an independent firm to forecast five years of revenue and operating costs, including projected increases for strategic/capital investments and increases to wages/benefits, while maintaining appropriate cash reserves. The prediction was a cumulative $600 million improvement to fund identified strategic requirements.

Solution 

The health system partnered with Navigant on an enterprise-wide initiative to help with the projected revenue and cash flow gap. The two-year project was called “Foundation for the Future.”

Over the course of 24 months, Navigant’s team concentrated on:

Impact

UABHS Case Study Results

 

Navigant’s team partnered effortlessly with our clinical leadership, executive leadership, and departmental leaders. This synergy was the key to identifying areas of opportunity and ensuring implementation was successful.

Reid Jones
Chief Operating Officer
UAB Health System

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