Case Study: University Hospital Gains Financial Insight, Improves Cost Management

CBORD Foodservice Software and Consulting Enable Significant Savings

Intent on improving financial insight into their food business to better manage costs, one of CBORD’s university hospital customers decided to add Foodservice Suite (FSS) to the CBORD solutions in place.

As part of their implementation, the hospital asked CBORD to help ensure they were implementing their software in a way that would gain them the most efficiency and cost reduction.

CBORD’s consultant, Cathy Ness, worked with the food and nutrition leadership team to make recommendations and create a plan designed to allow the hospital to reach its goals.

 The plan included:

  • Restructuring food management operations
  • Writing new process and policy documents
  • Implementing industry best practices
  • Creating KPIs to measure financial and operational progress

Phase I

A new food vendor contract negotiation kicked things off, allowing the hospital to leverage GPO purchasing power and rebates. FSS was implemented in the patient feeding kitchen, along with NetUnit Ordering to help with floor stock. NetUnit Ordering, combined with the operational processes and standards put in place, reduced floor stock costs by nearly $3.00 per patient.

The savings and control built momentum for the rest of the project. Over a few months’ time with FSS, the hospital saw a drop in on-hand inventory of almost 50%. Storage areas were cleaned, organized, and easy to navigate.

As the patient feeding area continued to use the system according to CBORD’s recommendations, their tray cost dropped from $2.60 per tray to $1.99 per tray, a savings of over $400,000 per year. Financial insight into their menus helped identify areas of focus for cost improvements.

Phase II

Due to COVID-19, CBORD worked remotely with the hospital to write new processes and policies to support the recommended changes, code their recipes, and plan for the implementation of FSS in the hospital’s retail area. Efficiencies were gained by implementing the inventory module and structured purchasing polices in the retail areas. Inventory dropped significantly and food cost in the retail area dropped from 68% to 51%. Service Menus and menu- driven purchasing were implemented next.

Phase III

The focus of this phase was on patient and staff satisfaction with the hospital implementing Room Service Choice to improve the patient experience and GET for staff to preorder food from the cafeteria.

As the hospital grows in their system maturity, CBORD will be alongside to support them in gaining more efficiencies and saving time and money.

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