Inside ASHE - Fall 2017 - 58

Feature

Value analysis:

Improving operating margin
through cost savings
By Bert M. Gumeringer, MBA, MSIT,
CHFM, FASHE, assistant vice president,
facility operations, Texas Children's Hospital

B

ringing greater value to
hospital operations has
always been a challenge
for health care facility
management leaders.
Health care facility
management has historically been
and continues to be viewed as a cost
to the organization with little if any
contribution to the operating margin of
the organization.
Operating margin is a measure
of a hospital's profitability
from patient care services and
other hospital operations.

58 INSIDE ASHE | FALL 2017

In the facility management business
the typical way a facility manager saves
money is through the reduction of
energy costs, retrocommissioning of
utility systems, securing multiple bids
for work, managing the use of overtime,
holding vacant positions open, and
adhering to maintenance schedules. Over
time facility managers lose sight of what
is going on around them as workloads
increase. Inattention by contract owners,
evergreen contracts with automatic price
increases, lack of negotiated pricing,
leader preferences, and physician
preferences are all drivers of increased
cost that affect operating margin. So,
how can a facility manager make the



Table of Contents for the Digital Edition of Inside ASHE - Fall 2017

Letter from the president
What’s new
Pop quiz
The measurement of a health care facility manager: How do you define success?
Creating a program to identify and monitor pressure dependent spaces
Critical considerations for specifying a building automation system for health care
Bright ideas: LED renovation at Boulder Community Health
Selecting the right fire extinguisher for operating rooms
Still battling reheat energy in hospitals: Short- and long-term ideas for hospitals’ biggest energy use
The financial impact of variable speed ventilation controls in hospital kitchens
Data driven culture fuels University of Florida Health’s success in energy and operational optimization
Energy management in a critical access hospital: How Barnesville Hospital reduced energy consumption by 39 percent
Value analysis: Improving operating margin through cost savings
Member spotlight
Advertisers’ index
Inside ASHE - Fall 2017 - Intro
Inside ASHE - Fall 2017 - bellyband1
Inside ASHE - Fall 2017 - bellyband2
Inside ASHE - Fall 2017 - cover1
Inside ASHE - Fall 2017 - cover2
Inside ASHE - Fall 2017 - 3
Inside ASHE - Fall 2017 - 4
Inside ASHE - Fall 2017 - 5
Inside ASHE - Fall 2017 - 6
Inside ASHE - Fall 2017 - 7
Inside ASHE - Fall 2017 - 8
Inside ASHE - Fall 2017 - Letter from the president
Inside ASHE - Fall 2017 - What’s new
Inside ASHE - Fall 2017 - 11
Inside ASHE - Fall 2017 - Pop quiz
Inside ASHE - Fall 2017 - 13
Inside ASHE - Fall 2017 - 14
Inside ASHE - Fall 2017 - 15
Inside ASHE - Fall 2017 - 16
Inside ASHE - Fall 2017 - 17
Inside ASHE - Fall 2017 - The measurement of a health care facility manager: How do you define success?
Inside ASHE - Fall 2017 - 19
Inside ASHE - Fall 2017 - Creating a program to identify and monitor pressure dependent spaces
Inside ASHE - Fall 2017 - 21
Inside ASHE - Fall 2017 - 22
Inside ASHE - Fall 2017 - 23
Inside ASHE - Fall 2017 - Critical considerations for specifying a building automation system for health care
Inside ASHE - Fall 2017 - 25
Inside ASHE - Fall 2017 - 26
Inside ASHE - Fall 2017 - 27
Inside ASHE - Fall 2017 - Bright ideas: LED renovation at Boulder Community Health
Inside ASHE - Fall 2017 - 29
Inside ASHE - Fall 2017 - 30
Inside ASHE - Fall 2017 - 31
Inside ASHE - Fall 2017 - 32
Inside ASHE - Fall 2017 - 33
Inside ASHE - Fall 2017 - Selecting the right fire extinguisher for operating rooms
Inside ASHE - Fall 2017 - 35
Inside ASHE - Fall 2017 - 36
Inside ASHE - Fall 2017 - 37
Inside ASHE - Fall 2017 - 38
Inside ASHE - Fall 2017 - 39
Inside ASHE - Fall 2017 - 40
Inside ASHE - Fall 2017 - 41
Inside ASHE - Fall 2017 - Still battling reheat energy in hospitals: Short- and long-term ideas for hospitals’ biggest energy use
Inside ASHE - Fall 2017 - 43
Inside ASHE - Fall 2017 - 44
Inside ASHE - Fall 2017 - 45
Inside ASHE - Fall 2017 - The financial impact of variable speed ventilation controls in hospital kitchens
Inside ASHE - Fall 2017 - 47
Inside ASHE - Fall 2017 - 48
Inside ASHE - Fall 2017 - 49
Inside ASHE - Fall 2017 - 50
Inside ASHE - Fall 2017 - 51
Inside ASHE - Fall 2017 - Data driven culture fuels University of Florida Health’s success in energy and operational optimization
Inside ASHE - Fall 2017 - 53
Inside ASHE - Fall 2017 - 54
Inside ASHE - Fall 2017 - 55
Inside ASHE - Fall 2017 - Energy management in a critical access hospital: How Barnesville Hospital reduced energy consumption by 39 percent
Inside ASHE - Fall 2017 - 57
Inside ASHE - Fall 2017 - Value analysis: Improving operating margin through cost savings
Inside ASHE - Fall 2017 - 59
Inside ASHE - Fall 2017 - Member spotlight
Inside ASHE - Fall 2017 - Advertisers’ index
Inside ASHE - Fall 2017 - 62
Inside ASHE - Fall 2017 - cover3
Inside ASHE - Fall 2017 - cover4
Inside ASHE - Fall 2017 - outsert1
Inside ASHE - Fall 2017 - outsert2
Inside ASHE - Fall 2017 - 70
Inside ASHE - Fall 2017 - 71
Inside ASHE - Fall 2017 - 72
Inside ASHE - Fall 2017 - 73
Inside ASHE - Fall 2017 - 74
Inside ASHE - Fall 2017 - 75
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