Maintaining a Low-Cost Provider Position

Problem: This smaller hospital knew the best way to compete was to be the low-cost provider, but they weren’t sure what kind of rate increases they could push for.  They didn’t want to leave money on the table, but they didn’t want to price themselves too high either.

Solution: By joining PDS, they learned that they hadn’t pushed for high enough rates, and had consequently dropped from $5.4 million below group average to $8.7 million below over a one-year period.

Result: With access to PDS data, they were able to drill into the service line detail to identify those service lines which had fallen furthest below the competition and targeted those areas for higher increases during upcoming negotiations.