How BI is Lowering Healthcare Costs

Scott Mace, for HealthLeaders Media , February 11, 2014

Having installed StrataJazz, there are payoffs already coming this spring for Legacy. "This year is the year where we implement Cogito in production," Kenagy says. "In April, not only does our budget year start, we'll also be upgrading to Epic 2012. Managers now have access to their costs on a monthly basis, and I know they [will be] using that information as they make budgetary decisions."

For instance, the cost accounting information will allow managers to break out a gross figure of cost of supplies, attribute it to various clinics, observe variations, and address the variations in next year's budget.

"It will be wonderful if a year from now we are doing our fiscal year 2016 budgeting [and] making amazing use out of the data systems to inform that, that we're just making sharper decisions on what we think our patient volumes will be, what we think the growth will be," Kenagy says.

Along with other efforts to eliminate waste, such as Lean, Kenagy expects a return on investment in this business intelligence push within the next two years. "The proof of the pudding is healthcare becomes cheaper for the people of Portland, because Legacy has done this and then created a competitive excitement around lower cost," he says.

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1 comments on "How BI is Lowering Healthcare Costs"

Frank Poggio (2/11/2014 at 9:04 PM)
Interesting piece. As a former CFO I always thought we would get to this and beyond. It's been decades in the making, and not too soon. Another firm that offers some nice tools to accomplish similar results is HCI based in Illinois. Info at




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