Nonprofit hospitals spend billions on consultants with no clear effect
24 points by hhs 3 hours ago | 10 comments
cameron_b 7 minutes ago
One contributing factor I experience is that keeping competent, opinionated, leadership who are a good fit is an expensive proposition, and the "hold fast" position will always be challenged by whatever board is scrutinizing the budget/plan/forecast. The only play where no top brass has to catch a parachute is to bring in a consultant to scrutinize the business, read the crystal ball, and pitch a plan to weather the coming storm.
Medicare funds are dust in the wind, Covid-era opportunities are dead and over, and the big axe has swung so much it needs sharpening. None of these are easy decisions to make and the result of "we're still doing what we're doing" is success.
replyrnxrx 9 minutes ago
Not to be glib, but is there any industry where management consultants have been shown to make a statistically significant difference either way?
replyhatthew 21 minutes ago
Can't access the paper, but I'm curious how they measured statistical significance. I wonder how much to interpret the result as "we didn't measure any effect" (which is a largely meaningless conclusion) versus "no effect exists." The latter wouldn't be a rigorous statement, but it seems to be the conclusion we are being led towards.
replynitwit005 35 minutes ago
Good to know I'm qualified. I am confident I can make no measurable difference.
replycoffeefirst 12 minutes ago
In fact, I’m prepared to make no difference 80% faster and 50% cheaper.
replyboznz 49 minutes ago
There is a very clear effect, the bureaucrats can distance themselves from any unpopular policies or decisions and blame the consultants.
replyoklahomasports 40 minutes ago
tedious cliche. these types of consultants arent advising on high level f500 decisions.
replytoast0 36 minutes ago
What do management consultants do?
replyAfaik, their job is to give management the cover managment thinks it needs to do the things it wants to do or thinks it needs to do.
The article claims the study says the billions spent on management consultants didn't move any metrics significantly, other than a small negative change for stroke readmissions.
laughing_man 16 minutes ago
There's no such thing as a nonprofit. It's really just a question of whether or not the money goes to the shareholders or the management.
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