Administrative Cost Reduction

Administrative Cost Reduction

Client:
A hospital was coming under significant cost pressure. A substantial administrative cost was the cost of mailings. There were approximately 500,000 mailings per year. 12% were returned and had to be reworked and re-sent. The labor and postage cost of returned mailings was over $100,000.

Goal:
Reduce the returned mailings by 75%.

Results:
Using basic tools such as process mapping and failure mode and effects analysis, it was possible to identify the major sources of mailing errors. The process was leaned out and database issues were resolved. The proportion of returned mailings was reduced by 80%.

Savings:
$81,000.