Growing pressure to reduce costs and looming reimbursement cuts and financial penalties mean hospital executives may need to get creative with their cost cutting strategies, according to a report from healthcare analyst IBIS World.
There are many ways to cut and contain costs, including the following three strategies:
1. Invest in smart technology. Hospitals should consider implementing pharmacy automation systems to reduce medication errors and boost operations efficiency. Human resources software is also a good alternative for hospitals looking to automate many labor- and time-consuming processes.
2. Outsource some services to maximize efficiency. Outsourcing medical laboratory services to commercial clinical labs with solid expertise, access to advanced analytical tools and the latest available technology can be more cost effective than conducting those services in-house
3. Think outside the box. Getting creative with inventory management can also minimize hospital costs. For instance, hospital can create files and preference cards to track the amount and type of medical supplies surgeons favor and purchase accordingly. They can save on costs associated with medical waste disposal services by reusing some waste containers. Hospitals can also try leasing medical equipment instead of purchasing equipment outright.
Ultimately, every hospital is different so executives should analyze their organizational needs and capacity to incorporate strategies that are most suitable for their operations, according to the report.
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