THE REGIONAL HOSPITAL IN ROGALAND, NORWAY

The Regional Hospital in Rogaland (Sentralsykehuset i Rogaland SIR) is rapidly setting new standards for excellence in health care in Norway. The hospital serves a southern region of Norway with a mainly oil based economy that was severely hit by the 1987 fall in oil prices.

After having struggled with repeated budget deficits and inadequate performance, the hospital decided to implement the Tor Dahl & Associates' performance improvement process.

In a four month period, hospital administrators and personnel went through an intensive and extremely successful productivity enhancement process. Initial confidential interviews were conducted with 100 key hospital personnel in which all organizational issues and problems were discussed, followed by seminars and Boot Camp in which participants actively worked to resolve their own problems.

The result of this process was no less than 80 recommendations for positive change which focused on improving the quality of care to patients. These recommendations would ensure that a productivity improvement potential of 60% would be realized.

The hospital immediately began implementing the recommendations, and the organization began to experience a rapid turnaround. In the 1989 annual report, only six months after the delivery of the final report, the following measurable outcomes were reported:

• A reduction in patient waiting lists by 18.5%.
• A more patient oriented hospital where the patient's needs became the greatest priority.
• Labor costs decreased, both in real terms (4%) and in terms of its share of the total operating budget (2.4%)
• Operating expenses decreased and revenues increased resulting in an increase in operating income by 6 mill. NOK (approx. $900,000).
• Turnover among nurses decreased by 27%.
• Improved cooperation/communication between physicians and nursing staff.
• A significant increase in laboratory analysis and testing internally (a 19.4% increase in the number of performed laboratory tests), resulting in an increase in revenues by 73%. This was accomplished by upgrading laboratory equipment and by an increase in sales of test results to external customers.
• The SIR Management School. In cooperation with Rogaland Research Institute (Rogalandsforskning), SIR has developed a Hospital Management School which focuses on training and development of hospital administrators and managers.

SIR is now widely regarded as one of the most innovative and progressive hospitals in Norway.

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