Working with an outside group of asset management and financial consultants, Aurora began in early 2012 to reassess its investments in diagnostic imaging equipment. Using data analytics to determine equipment age, repair history, and utilization by department, the system's executive leadership began making more educated decisions about its capital spending.
For example, the team studied utilization patterns of Aurora's 56 CT scanners and found significant activity variation among sites. "As a result, we chose to concentrate machines in the most high-demand, high-volume locations throughout the system to better align use with patient needs and to eliminate duplicate services offered at sites in close proximity to each other," Hahn says.
Prior to this initiative, "decisions often were made without sufficient background information on the state of the existing equipment throughout the system and whether the device utilization rates or market needs warranted total replacement at a specific site," he adds.
The data-driven strategy has paid off. Aurora has achieved $12.5 million in capital avoidance costs and saved $4.4 million in operating and equipment service costs through analyzing diagnostic imaging equipment utilization, maintenance, and condition.