Integrated Delivery Network

IDN Launches $5.2 Million Operations and Labor-Savings Initiative with Help from Guidehouse


In 2017, an integrated delivery network (IDN) formed through the merger of three health systems faced a common challenge: how to integrate and streamline their human resources (HR) operations and benefits structures.

The IDN, composed of three culturally distinct entities, sought to do so while ensuring insurance, retirement, paid time off, and other benefits were consistent across health systems. The IDN’s leadership also desired to reduce labor costs to increase efficiency, where possible. The IDN set a strategic goal of accomplishing these tasks by 2020.


The IDN leadership engaged Guidehouse Inc. to identify opportunities for operations and labor staffing efficiencies and develop a plan for implementation that included achieving buy-in from employees across the three health systems.

Guidehouse’s analysis of the three systems’ HR resources revealed that the IDN employed one HR associate for every 175 employees. On the other hand, Guidehouse’s benchmarking data showed that top-performing organizations employ HR resources at a ratio of 1-to-200, disclosing an opportunity for the IDN to increase HR labor efficiency. Furthermore, Guidehouse suggested the IDN could save $500,000 to $1 million by redeploying HR resources to other areas of the organization and by not filling open positions.

Guidehouse worked with IDN leaders, HR managers, and employees to develop a new operating model, with a standard IT system and centralized operations for:

  • Wellness and benefits
  • Retirement
  • Training and development
  • Talent acquisition
  • Physician recruitment
  • HR information system (HRIS)
  • Compensation

The new operating model also would incorporate decentralized but standardized functions for employee health and labor relations.


IDN Launches $5.2 Million Operations and Labor-Savings Initiative with Help from Guidehouse

Identified more than $5.2 million in savings, including:

  • $2.4 million in wellness and benefits
  • $870,000 in retirement
  • $550,000 in employee health
  • $510,000 in talent acquisition
  • $500,000 in labor efficiency
  • $370,000 in vendor consolidation and other HR operations efficiencies

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