Fact Sheet
Efficiency Study of the State Psychiatric Hospitals
Final report dated March 2, 1998
Commissioned by State of North Carolina Department of Health and Human Services Division of Mental Health, Developmental Disabilities and Substance Abuse Services
Prepared and submitted by MGT of America, Inc., a national management research and consulting firm based in Tallahassee, Fl. Offices in Austin, Tex., Olympia, Wash., Asheville, N.C., and Fort Myers, Fl.
Senior Partner Steve Humphrey of the Asheville office was partner in charge of the project.
Senior Associate Lyn Davis, Ph.D., was project director.
Office location: 1 Oak Plaza, Suite 207, Asheville, NC 28801, Telephone 704 232-1679
Cost of study: $500,000
Funds appropriated in North Carolina Senate Bill S 352, ratified August 28, 1997.
Scope of services requested:
- To identify specific areas for improved operations and improved efficiency through a review of patient-to-staff ratios and cost efficiency of the various patient units within the hospitals.
- To identify potential areas for achieving greater cost efficiencies by contracting with private providers.
- To identify the need for specific physical plant renovations, replacements or new construction necessary for improved operations and efficiencies, including specific savings to be derived, the cost of the physical plant changes and the time period over which the cost of improvements in efficiency would be recovered.
- To determine the impact of any proposed changes on all potential revenue sources and on the overall need for state appropriations.
Project Methodology:
MGT teams conducted preliminary site visits in December 1997 followed by more detailed site visits in January 1988.
During these visits MGT staff—
- Interviewed numerous managerial, supervisory and operating personnel.
- Reviewed fiscal and operating reports.
- Observed direct and indirect care operations and patients throughout the hospitals during all shifts, including weekends and holidays.
- Conducted numerous focus groups and examined the physical plant and physical plant records.
Team members collected additional information and data regarding hospital operations and physical plant data from division and departmental representatives.
The project team then met to document and analyze the information collected.
Other North Carolina MGT clients:
- Department of Administration
- Department of Human Services
- Department of Transportation
- City of Asheville
- University of North Carolina
- Duke Endowment
- Durham County Board of County Commissioners
- Durham County MHDDSAS Department
- Northwestern Regional Housing Authority
- Joint Legislative Commission on Government Operations
- University of North Carolina at Greensboro
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