Cost Reduction

3 Cost Containment Ideas For Hospitals Heading Into a Challenging Environment In 2018

Cost Reduction, Hospital Finance, Hospital Management, Operational Efficiency, Revenue Cycle, Supply Chain, The Business of Surgery /

As we head into 2018, there appears to be a lot of headwinds facing hospitals and healthcare systems: regulatory uncertainty around the Affordable Care Act, slowing patient admissions, accelerating costs and shrinking margins. Moody’s Investor Services predicts bad debt to grow 6-7% in 2018 and operating cash flow for non-profit hospitals to shrink 2-4%. In […]

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Using Analytics to Improve Quality and Lower Costs

Big Data, Clinical Documentation, Cost Reduction, Hospital Finance, Hospital Management, Operational Efficiency, The Business of Surgery /

As healthcare providers continue to pursue the triple aim, leading hospitals are turning to data analytics to identify major areas for improvement in daily operations. All three of the triple aim objectives – patient experience, population health and cost – can be attacked in various ways by analyzing high fidelity data for trends and patterns.

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How To Close A $25 Million Budget Gap In 10 Days

Cost Reduction, Hospital Finance, Hospital Management, Operational Efficiency, Supply Chain, The Business of Surgery /

With the constant shift in the payor environment, and the continuing consolidation of the hospital market, many healthcare providers are having to search for new ways to cut costs and increase revenues just to stay profitable. There are so many places that hospitals can unlock additional dollars, but where should they start? The management team

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How Michigan Medicine Tracks Tissue To Meet Joint Commission Standards and Reduce Costs

Clinical Documentation, Cost Reduction, Hospital Finance, Hospital Management, Infection Control, Joint Commission, Operating Rooms, Operational Efficiency, Patient Safety, Regulatory Compliance, Supply Chain, The Business of Surgery, Tissue Management /

University of Michigan Hospitals and Health Centers (U-M) in Ann Arbor, Michigan is one of the nation’s top medical centers, and was recently named the #6 hospital in the United States according to the 2016-17 Best Hospitals Honor Roll rankings by US News and World Report.  As the main medical campus of the Michigan Medicine

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Falling Short of Your Cost Reduction Goals? You’re Not Alone

Cost Reduction, Hospital Finance, Hospital Management, Operational Efficiency, Supply Chain, The Business of Surgery /

A recent survey by Kaufman, Hall & Associates has revealed that most hospital executives feel that they are falling short of their cost reduction goals.  They survey of over 150 senior hospital executives revealed that 75% of the respondents felt that their cost transformation success has been average to below average. The move from volume

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Hospital Supplies– A $23 Billion Savings Opportunity?

Big Data, Cost Reduction, Hospital Finance, Hospital Management, Operational Efficiency, Supply Chain, The Business of Surgery /

A recent study by Navigant Consulting concluded that the average hospital could achieve supply savings of nearly $10 million annually, or 17.8%, by pursuing some basic strategic initiatives.  With hospital margins often hovering near breakeven, that is an additional $10 million in savings that can flow directly to the bottom line. The other key finding

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How to Set a Consignment Strategy

Big Data, Cath Lab, Cost Reduction, Hospital Finance, Hospital Management, Operating Rooms, Operational Efficiency, Radiology, Supply Chain, The Business of Surgery /

Consignment items have been a frequent subject of conversations we have with inventory managers in procedural areas of hospitals.  Many hospitals that we’ve visited have a mix of consigned and owned products in their inventory. However, when you dig deeper you’ll find that many supplies were added to inventory as consigned or owned for inconsistent

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Do You Hear Too Many Footsteps?

Big Data, Cath Lab, Cost Reduction, Hospital Finance, Hospital Management, Operating Rooms, Operational Efficiency, Radiology, Supply Chain, The Business of Surgery /

Today, most hospitals are starting to understand what items and supplies they use by looking at data coming out of their documentation or materials management systems.  Maybe they even go a step further to standardize on certain products (it seems like every hospital has a “Product Standardization Committee” and/or “Value Analysis Committee”). But does your

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Supply Chain Efficiencies and Process Redesign Top Survey of Cost Containment Strategies

Cost Reduction, Hospital IT, Supply Chain, The Business of Surgery /

Purchasing and supply chain efficiencies continue to be viewed as the primary ways to drive cost savings at hospitals. This is according to the recent survey titled 2017 HealthLeaders Media Cost and Revenue Strategies: The Need for Transparency and Understanding True Costs. According to the survey, respondents aren’t seeing any signs of diminished returns from

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View From the C-Suite: There’s No Money in Linens

Cost Reduction, Hospital Finance, Hospital Management, The Business of Surgery /

I visited a top academic hospital in the United States today. Working with the Chair of one of the departments, he provided an insight I hadn’t really heard of before. This addresses many of the management ideas that we have all learned about – setting priorities (as opposed to trying to do everything), the 80/20

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