OPERATING REVIEW
Operating Performance
September 2026

Sometimes Efficiency Requires Spending More

At a hospital routinely operating above 98% occupancy, a deliberate investment in case management helped reduce average length of stay from 4.17 to 3.72 days while achieving top-quartile readmission performance—and created badly needed capacity for growth.

Hospital case manager discussing care progression and discharge planning with a patient and family member at the bedside.
Healthcare strategy extends beyond the hospital campus.

At our hospital in Bakersfield, we routinely operated above 98% occupancy.

Length of stay wasn't simply an efficiency metric. When beds weren't available, patients boarded in the ED, nurses cared for admitted patients alongside new emergencies, and first responders waited longer to complete patient handoffs.

We needed to create capacity without compromising quality.

4.17 → 3.72 days
Average length of stay

Despite significant cost pressure, we made a deliberate decision to spend more on case management, reducing caseloads from approximately 18 patients per case manager to 12. We paired that investment with focused work alongside our hospitalists, surgeons and other clinical leaders to improve care progression and remove barriers to discharge.

Average length of stay fell from 4.17 to 3.72 days, while we simultaneously achieved top-quartile performance in reducing readmissions.

The impact rippled through the organization. Better patient flow reduced ED boarding, improved ambulance handoffs, eased pressure on staff and physicians, and created badly needed capacity for additional patients. Improved throughput became part of a broader growth strategy that contributed to more than $45 million in net revenue growth.

Quality, capacity, growth, finance and culture aren't separate problems. They're an interconnected system.

Sometimes operating efficiency isn't about spending less. It's about understanding where to spend more.

OPERATING REVIEW

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Strategy, operations, quality, physicians, people, and performance—examined as parts of one interconnected system.

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