Anticipating cuts in government reimbursements, Phoenix-based Banner Health has ordered up cost-cutting measures that will impact hospitals across its network, including those in Northern Colorado.

North Colorado Medical Center in Greeley and McKee Medical Center in Loveland are both working to reduce costs in a variety of areas, from reconfiguring floors to increase efficiency to simply optimizing supply-ordering procedures.

Overall, Banner is aiming for $150 million in cost reductions in the next 12 months. The company operates 23 hospitals with 37,000 employees in seven states.

As part of its campaign, Banner will take a look at its labor costs, which account for half of all hospital spending. Banner is one of Northern Colorado's largest employers, with more than 4,000 workers. Top officials at NCMC and McKee, though, say that at their hospitals, cost reductions will come from other areas.



Building for efficiency

At McKee, construction is under way to optimize the use of existing space on the second floor of the hospital, according to hospital CEO Marilyn Schock.

The space currently consists of three separate patient-care units, each with a nurses' station.