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Southwest General Health Center Saves $10 Million in Annual Staffing Costs with Kronos®

Hospital positively impacts bottom line with time and attendance and labor analytics

CHELMSFORD, Mass., April 2, 2009 — Challenged by labor costs that were exceeding budgets, Southwest General Health Center chose to implement time and attendance and labor analytics applications from Kronos® Incorporated to collect and analyze productivity data of 2,500 employees.

News Facts

  • Prior to Kronos, Southwest General did not have a software solution for managing productivity and labor cost management. It selected Kronos for its depth of functionality and approach to complete automation as a centralized solution with real-time capabilities.
  • Southwest General used the Kronos solution to identify cost centers with the highest variances between actual versus budgeted staffing costs. At the top of the list was the Emergency Department, which was exceeding its staffing budget by $25,000 per pay period. Further analysis revealed that the department was basing its staffing needs on historical patient volume data that was outdated. Using high-quality information in the Kronos solution, Southwest General adjusted the department's staffing levels based on recent patient volume data, and immediately reduced the budget overage by $23,000 per pay period. The staffing changes had no negative impact on care quality or patient satisfaction.
  • With increased visibility and control over labor-related metrics, Kronos helped Southwest General improve productivity, avoid over scheduling, and reduce over-payments. As a result of using the Kronos solution, Southwest General has reduced its total labor costs by more than 10 percent, representing a $10 million annual labor cost reduction.
  • While salaries accounted for 39 percent of net revenue in 2005, with the help of Kronos, Southwest General lowered the percentage further to 35 percent in 2008.

Supporting Quotes

  • Kelly Linson, director of financial services and corporate controller, Southwest General Health Center
    "We needed an easy-to-own system to boost our productivity and maintain our competitive edge. Overall, with Kronos we have been able to combat rising supply costs, reduce agency spending, and optimize our staff productivity to deliver quality care."
  • Brian Graves, global practice leader of healthcare, Kronos
    "Southwest General has a strong commitment to accountability and high-quality care. Automating with Kronos helps the organization simplify workforce management processes, optimize staff productivity, and make a difference to the bottom line. All these benefits are helping Southwest General to further improve the delivery of its nationally recognized care at a reasonable cost."

About Kronos Incorporated

Kronos is the global leader in workforce management solutions that enable organizations to control labor costs, minimize compliance risk, and improve workforce productivity. Tens of thousands of organizations in 60 countries — including more than half of the Fortune 1000® — use Kronos time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics applications. To learn how Kronos uniquely delivers complete automation and high-quality information in an easy-to-use solution, visit

© 2009 Kronos Incorporated. Kronos is a registered trademark of Kronos Incorporated or a related company. All other trademarks are property of their respective owners.