Struggling to contain costs? Explore strategies healthcare organizations can leverage to cut expenses and improve efficiency—all while prioritizing patient care.
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Editorial PolicyPublished August 15, 2024.
The spiraling cost of healthcare in America has become an urgent crisis, straining budgets and putting quality medical care out of reach for millions. As insurance premiums and out-of-pocket expenses continue to climb, patients make choices between their health and financial stability.
Meanwhile, health systems themselves struggle under the weight of operational inefficiencies, regulatory burdens, and outdated payment models. Left unchecked, runaway costs threaten to cripple hospitals and undermine the entire foundation of healthcare.
Fortunately, there are ways to bend the curve without sacrificing quality of care. By reimagining everything from care delivery models to back-office operations, healthcare organizations can reduce costs and chart a path toward a more sustainable and equitable future.
» Reduce the costs in your healthcare organization with a knowledge management system
1. Effective Care Coordination
Effective care coordination ensures that patients get the proper treatment at the right time and are set up for a safe discharge from the moment of admission. C8 Health offers personalized communication channels and news feeds.
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The platform also alerts content owners when items' expiration dates approach. The system automatically detects duplicates to ensure that everyone is working with the most updated versions. When guidance changes, clinicians get push notifications on their phones.
2. Telemedicine
Telehealth is becoming more valuable, particularly in light of the COVID-19 pandemic. Virtual office visits help healthcare providers connect with patients and treat them without the higher costs and the logistical challenges of in-person visits.
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In addition to outpatient care, this trend can also improve inpatient treatment via remote access to specialists like psychologists or psychiatrists. This is especially beneficial for people having mental health crises, as it ensures timely access to care without the need for travel.
» Learn how knowledge management reduces healthcare costs
3. Supply Chain Management
COVID-19 highlighted the importance of robust supply chain practices in ensuring access to quality supplies at competitive prices. By forming solid contracts, hospitals can maintain operational efficiency and ensure uninterrupted care delivery.
Procuring high-quality, hospital-grade equipment is essential for delivering effective treatment. While it may come with a hefty price tag, it's a long-term asset that helps provide healthcare and reduces costs through improved patient outcomes.
Hospitals should find suppliers that guarantee equipment quality with warranties. By prioritizing quality over short-term cost savings, hospitals can ensure the equipment's reliability and cost-effectiveness.
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4. Robust database system
A database can offer insights into best practices, care pathways, and typical patient outcomes for various conditions. Accessing this information via online portals would also help patients participate in their treatment.
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Transparency can lead to greater satisfaction and better outcomes. Additionally, AI-driven alerts and reminders could ensure users adhere to guidelines and protocols, augmenting the clinical decision-making process.
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C8 Health is a platform designed to improve clinical resource management for hospitals and medical departments. It centralizes all clinical resources in one place, making them accessible to everyone on any device. This helps medical teams find information quickly, collaborate more effectively, and provide more consistent care to patients.
Main Factors Driving Healthcare Costs
According to a 2019 article published in the Journal of the American Medical Association, the US spends more on healthcare than any other country, with costs approaching 18% of the gross domestic product (GDP).
Building upon Dr. Berwick's six domains of waste outlined in "To Err is Human," the authors analyzed the costs associated with each domain. The study revealed a staggering $191-265 billion loss across all of them.
Some of the areas affecting the results were:
- Breakdown of IT resources
- Care coordination inefficiencies
- Administrative setbacks
- Suboptimal care delivery
- Pricing failures
- Overuse or underuse of healthcare services
Healthcare organizations should manage their resources better instead of just focusing on cutting costs. For example, most hospitals in the US rely on travel nurses, but the efforts should be focused on improving the efficiency of existing staff, so these temporary solutions aren't necessary.
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Additionally, pharmacology should focus on finding contracts that offer substantial savings, primarily for high-cost, low-use items like chemotherapy agents.
Squeezing the Waste Out of Healthcare
Healthcare systems face significant challenges in reducing costs while maintaining high-quality care. By implementing the five strategies discussed, hospitals can make meaningful strides without compromising patient outcomes.
These approaches require commitment, investment, and often cultural shifts within organizations. But, the long-term benefits of a more efficient, cost-effective healthcare system are substantial, not only for the institutions themselves but also for patients and society at large.
» Achieve better care coordination and reduce the costs of your healthcare organization
