How Organizations are Creating Cost-Efficient Structures
Centralization is more than a just a structural choice.
Many health systems are reassessing organizational design in the face of evolving labor challenges, rising costs, and ongoing consolidation. By adopting centralized functions, organizations can address these issues more effectively.
Centralization enables better alignment of skill sets to patient needs, streamlines operations, and supports financial sustainability. This strategy isn’t limited to systemwide changes; it can also be applied regionally or within specific departments or entities. Careful design consideration, implementation planning, and a thoughtful rollout strategy is can help ensure to positive outcomes.
While centralization of certain sub-functions may be beneficial, a balanced approach is required when considering how to design and deploy the team optimally. A given job family or function may have parts of it centralized with others deployed locally.
Download our infographic to learn more about:
- How health systems are centralizing
- The benefits of centralization
- Headcount distribution by career stage
- Span of control
- Base payroll cost
- and additional considerations…
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