Demand & Capacity Modelling - Healthcare Operations
Our healthcare client was grappling with a growing backlog of patients waiting for an initial appointment, compounded by a lack of accurate reporting due to ineffective data collection structures.
Faced with the challenge of understanding their existing capacity for processing referrals and analysing historic data to project future demand, we set out to create a robust demand and capacity model. This model aimed to forecast the expected growth rates of waitlists and identify opportunities for improvement - without simply relying on additional recruitment.
The Challenge
Our client faced a critical situation, with wait times for patients increasing and backlogs growing significantly. The existing data collection methods hindered accurate reporting, making it difficult to assess the true state of their capacity and demand. Our initial analysis revealed alarming projections: at current staffing and referral rates, the number of waitlisted patients was projected to double within just 12 months. This prompted urgent action to address the underlying issues - without simply adding more resources.
Our Approach
To tackle these challenges, we employed a systematic approach that focused on understanding existing resources and optimising them through strategic change management:
1. Demand & Capacity Analysis:
• Conducted a thorough review of the current referral processing capacity, analysing historical data to understand the trends in referrals received and the existing waitlist dynamics.
• Developed a demand and capacity model that accurately projected anticipated growth rates, revealing the potential doubling of waiters if current conditions persisted.
2. Assessment of the Existing Clinic Model:
• Evaluated the current clinic structure and operational workflows to identify inefficiencies and underutilised resources within the existing workforce.
• Engaged with staff to understand challenges and gather insights on areas for improvement, fostering a culture of collaboration and ownership.
3. Restructuring for Increased Capacity:
• Implemented change management techniques to optimise the existing workforce’s capabilities rather than recruiting additional staff. This approach focused on unlocking underutilised resources and enhancing workflow efficiencies.
• Developed a streamlined process that maximised the effectiveness of current staffing levels, ensuring that every team member’s skills were utilised to their fullest potential.
4. Monitoring and Projecting Outcomes:
• Established a framework for continuous monitoring of waitlist metrics and resource utilisation, enabling the client to track the impact of the changes implemented.
• Projected that within six months, the backlog would reduce to a sustainable level, providing the client with a clearer pathway to managing future demand.
Key Results and Deliverables
• Restructured the existing clinic model to increase the ratio of initial appointments available vs underutilised follow-up appointments
• Projected backlog reduction: The restructuring initiatives projected a significant decrease in the backlog, bringing waitlist numbers down to a sustainable level within six months.
• Optimised use of existing resources: By focusing on internal growth and unlocking underutilised potential, the client was able to increase service levels by 33% without the need for additional recruitment.
• Improved reporting accuracy: Enhanced data collection methods allowed for more accurate reporting, enabling better decision-making and resource allocation.
• Sustainable capacity management: The client established a robust framework for ongoing monitoring of demand and capacity, ensuring they could proactively manage future growth and avoid similar backlogs.
Conclusion
This demand and capacity forecasting project demonstrated our ability to deliver strategic solutions that optimise existing resources while addressing pressing operational challenges.
Our client was able to realise a 33% increase in operational productivity through organic utilisation of existing resource without any increase in cost base whatsoever.
By focusing on internal restructuring and leveraging current workforce capabilities, we helped our client reduce their backlog of waiters and establish a sustainable model for managing future demand. Our approach not only improved operational efficiency but also positioned the client for continued success in an evolving healthcare landscape.