Health care spending accounts for a large portion of the U.S. economy. There are growing pressures to control costs in general, and hospitals are also facing the added pressure of reduced reimbursement. Analyzing the relationships between patient levels and staffing levels offers a cost-savings opportunity. University Hospitals, a Cleveland-based health system with 14 medical centers, used data analysis to cut $135 million in labor costs over a two-year period. Starting with a core staff, the hospital used business analytics to determine staffing needs and drew from a part-time staffing pool as needs fluctuated.

Source: Laura Landro, "Health Care (A Special Report)'Waste Not' Becomes Easier for Hospitals: A New Index Allows Them to Target Areas Where Their Costs Appear to Be Out of Whack," The Wall Street Journal, Eastern edition, February 24, 2014, p. R.3.