Service Delivery Planning

Kaiser Permanente Hawaii serves a population of 250,000 members via one hospital and 17 ambulatory sites across three islands. The Region had a strategic and service delivery plan that resulted in more than $1 billion in capital requirement over 13 years. A large portion of the plan was to support replacement/improvement/renovation projects—and the Region sought a fact-based approach to prioritize need and potentially invest more in growth/revenue generation opportunities.

The Innova Group was part of an internal team that developed an extensive fact base of existing conditions, space utilization, access/drive times, scheduling efficiency, patient utilization, market share, etc. Innova developed analyses and tools that allowed the Region to assess, measure, and prioritize capital demands by both the “attractiveness of the market” and the “requirement for investment” based on existing conditions. Studies included understanding the current “asset utilization” of spaces (such as visits per exam room, cases per operating room) as well as the difference between current department size and ideal department size based on benchmarks (such as DGSF per exam room, DGSF per operating room).

Innova worked with the Region to understand where sources of new members are likely to be, where investments in existing facilities should be minimized, and where opportunities to manage demand (rather than managing supply) could reduce the need for incremental space and renovation. The result was a modified capital plan that had investments in new markets (to improve access and foster growth), that replaced only the most seriously deficient facilities, and replaced some facilities at smaller size than originally envisioned, including projecting an estimated ~20% increase in exam room utilization.