Cost containment in healthcare is essential to survive in the harsh economic environment. Leaders are not only tasked with the responsibility of improving the quality of work of their teams but also define a clear structure of containment as well as raising accountability. According to Olden (2014), healthcare costs in America are over $ 2.5 trillion which are expected to be higher in the coming years. Some studies also show that there are compelling signals that much of health care spending does very little to improve health. In the face of such challenges, healthcare leaders are left with no choice but device ways that help cut cost but enhance health since most healthcare organizations have avenues that cost containment can be utilized.
The discussion in this paper presents a containment plan by a hospital manager in cutting hospital costs by 5%. It also discusses how the strategies in the plan affect patient-centered care.
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Expenses Cut
A key strategy to achieving cost containment in hospitals would be reducing the number of inpatients admissions and the average length of stay while maximizing on Ambulatory care. Patient admissions and readmissions equally explain the more extended periods that patients take in the hospital facility. Common factors attributed to a patient’s re-admission or admission include miscommunication, errors and poor planning by the hospital staff which make the patient either have a wrong diagnosis or treatment that gets the patient an admission. A reduction in the number of hospital stays of the patient relatively reduces the huge costs that the patient may incur or eventually fail to pay. Maximizing ambulatory care, on the other hand, reduces the need for admission and the costs incurred. As a leader, this plan will work well for the health organization and reduce costs by even more than 5%.
As much as testing and diagnosis are fundamentally important for every patient, some are inappropriately used and end up increasing costs on the hospital and the patient. Standardized care by the physicians works better in reducing unnecessary tests and procedures (Carmen Binder, 2017). An example is patients who have back pain and often come back; physical therapy is better used than a CT scan. This will relatively reduce costs.
Lighting, water taps can be utilized very well to reduce colossal water and electricity bills. There are places in the hospital that may not require illumination; such can be removed or put off. Lights should remain on in the hospital wards, surgery rooms and other rooms within the healthcare organization. Water taps should not be left running if not being used to reduce the cost of water.
Supply chain costs are highly incurred where an improper analysis of the effectiveness of products was taken. First and foremost, there is a need to identify what is needed that should be supplied. These reduce costs and wastage of some hospital equipment or supply which is not used often. Besides, having a well-structured inventory helps in determining prices, best suppliers and quality of product to maximize on quality that is relatively affordable.
Staffing is a huge expense for most healthcare organizations. As much hospital staff contributes close to 95% of service, the numbers can be reduced to cut on costs. Since overtime is usually payable, it can be scraped off or reduced when necessary, in this will reduce costs paid to staff as overtime and allow them time to rest too. Nurses can still be used to transport patients to the emergency room rather than transport persons. Training is also important to effectively utilize and diversify skills available rather that recruiting others. Additionally, a healthcare organization can eliminate unnecessary positions that contribute 0% to the health of patients
Effects of Cost Containment on Self-centred care
Discharging patients once they start recovering from illness save them the burden of huge bills to pay because of longer stays. Moreover, patients enjoy being at home with their family than staying in the hospital. The closeness of family than in the hospital bed helps them recover even faster.
With the right diagnosis and tests taken on a patient, quick attention is given to a patient and effective treatment used. However, when physicians take high-cost containment strategies, patient care may be neglected due to cutting costs inform of limiting tests and diagnosis on a patient (Carmen Binder, 2017).
Although diversification, training and effective use of hospital staff is appropriate in avoiding costs that arise on recruiting a new team, it can be of great disadvantage to the patient. If the staff does not get the concepts very well, for instance in surgery, they may end up performing the wrong operation on a patient causing worse effects.
Conclusion
Overall, health care organizations ought to cut costs effectively by reducing inpatient admissions, cutting on supply chain costs, reducing overtime and maximizing training to utilize the service of their staff effectively as well as limiting tests and diagnosis. This increasingly lessens the hospital bill burden on patients, improve self-service to the patients while negatively, patients may continue suffering due to improper care. Such a plan will help a healthcare organization utilize their resources effectively and maximize patient care
References
Carmen Binder, M. S. (2017, November 20th). Costs and benefits of diagnostic testing: four ways to improve patient care by purposive use of in vitro diagnostics. Biomedical Intelligence, 147 (1), 47-48. doi:https://doi.org/10.4414/smw.2017.14546
Olden, P. C. (2014). Management of Healthcare Organizations: An Introduction (2nd ed.). Chicago, USA: Health Administration Press. Retrieved December 1st, 2014
