(Premier: Charlotte, NC) -- To help reduce costs without negative effects on quality, hospitals and health systems in California are joining a labor-related management collaborative managed by the Premier health care alliance.

Hospitals stand to lose almost $200 billion in reimbursement during the next decade as a part of health care reform, and additional reimbursement dollars will be tied to their ability to improve quality and prevent harm.

Premier’s California Labor Management Collaborative (CLMC) aims to help participants improve efficiencies while maintaining care quality by comparing participant labor expenses and productivity levels to peer hospitals, as well as state and national top performers.

CLMC participants will use OperationsAdvisor, Premier’s web-based labor benchmarking and productivity solution. With customer-validated savings exceeding a 14:1 return on investment average, OperationsAdvisor has helped hospitals reduce costs through more efficient labor management. For example, a New Mexico health care system achieved $10 million savings and a Maryland health care system saved more than $5 million, both in one year, using the solution.

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