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Providence Mount St. Vincent

Organizational Impact

Organizational impact in case study findings is defined as impact in quality and/or staffing impact that increases revenue and/or decreases costs for the organization. These are outcomes related to The Mount's efforts to be a "Provider of Choice" (resulting in higher revenues) and "Employer of Choice" (resulting in lower costs).

Organizational Impact Quantitative and Qualitative Findings

  • The above graph on average years of service describes the organizational advantages of staffing impact. Very modest estimates put cost savings of lower turnover and increased retention at $270,000 per year.
  • The above average occupancy graph illustrates the organizational advantages of quality impact. Even at an extremely conservative scenario of $50,000 total yearly revenue per resident, The Mount still generates $1,200,000 in additional revenue over the national average (200 bed assumption).   

Market Reality – Consumers want choices, and the choices (food, activities, schedule) provided by The Mount elevate market position.

Labor Market Reality- Staff generally want to feel listened to by leadership and empowered to make residents happy. With this structure, retention goes through the roof.

The above findings point to return on investment for The Mount from culture change efforts. Findings are consistent across years and indicate that The Mount has achieved sustainability in ongoing culture change efforts. Case study findings also revealed additional examples of quality improvements that lead to cost efficiencies (examples below).

  • A private pay nursing neighborhood resident was having trouble adjusting to her new environment (and would likely have left) until she met and formed a friendship with the neighborhood cat (cost of cats $500 a year). Measuring return on investment as yearly revenue of private pay versus the Medicaid rate equates to a return in the tens of thousands of percentage points. The investment also translated to the resident's quality of life and sparks conversations with the staff and her family. 
  • "As neighborhood coordinators, nurses are looking at environmental things as well." – Neighborhood Coordinator. For example, a neighborhood coordinator noticed a rug that she felt needed some securing to prevent a fall. She generated the repair (cost of repair-negligible estimate $50). With the average healthcare cost of a fall (according to the CDC) of $19,040, the ROI for empowering nursing staff to view the bigger picture is also in the tens of thousands of percentage points. Of course, quality of care and life are also significantly improved by avoiding this type of trauma. 
  • The Mount's policy of empowering employees and encouraging problem-solving extends to recognizing the talents of staff members. One employee began a career at The Mount by answering phones. His ability to provide excellent customer service to residents and employees was quickly recognized and he was identified as a perfect candidate for operations support. During case study interviews, this employee was identified as the person who "fixes" everything. Examples include his ability to set-up electronics by simply purchasing equipment ($77) as opposed to calling for an outside company to consult and do the job ($1000 cost). In another example, there was an issue with TV reception that was burdensome to residents and staff. The staff member identified the problem and fixed it himself eliminating the need to call an engineer and pay a fee. Residents and staff were thrilled with the quick fix.

Additional Examples of Revenue Enhancement from Culture Change Transformations:

  • "The best advertising is word of mouth."- Mount staff member. Community-based programs such as Adult Day and the Intergenerational Learning Center generate referrals. So, although those programs may not operate with the highest margins in the community, they still increase occupancy in the higher margin areas and lower advertising costs. Since employees take advantages of those services for families, these programs also increase employee retention. 
  • The Wellness Clinic and Emilie's Treasures generate revenue with high margins. 
  • The inclusion of the outside community in Mount activities adds to quality of life and atmosphere while also generating financial support. For example, designers decorate Christmas trees that are auctioned off generating as much as $107,000 to resident programs.

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