Michigan Hospitals Cut Costs By $117 Million

Michigan's hospitals were able to reduce costs by $117 million last year by focusing on efforts to reduce infections and readmissions.

The savings were achieved via an initiative created by the Michigan Health & Hospital Association's Keystone Center.

The hospitals focused on reducing readmissions within 30 days of discharge and the rates of hospital-acquired infections and other conditions, such as pressure wounds.

Among the results:

• Hospital-acquired urinary tract infection rates by patient day were reduced more than 74% between January 2012 and August of this year

• Reduced central line bloodstream infection rates by more than half

• Early-term elective births (before 39 weeks of gestation) were reduced by 68%

• Reduced admissions to neonatal intensive care units by 35%

• Reduced pressure ulcers by 37.5%

Hospitals were also able to reduce the mortality rate for sepsis and reduce the number of mislabeled surgical specimens.

“The tireless efforts of Michigan’s dedicated hospital leaders and clinical teams have saved thousands of lives, reduced infections, improved the culture of safety and made Michigan hospitals among the safest in the country,” said MHA President Spencer Johnson. “While these latest cost savings are significant, success is really measured one way: one healthy patient at a time.”

Despite the nine-figure cost savings reported, it still represents only about one-half of 1% of the total revenue taken in by Michigan's hospitals.

The MHA's Keystone program is one of 26 initiatives that receives funding from the U.S. Department of Health and Human Services to identify, share and implement best

practices for reducing preventable hospital-acquired conditions. MHA Keystone recently received additional funding from HHS last month, officials said.