As it has been seen, the healthcare sector is in a vulnerable position and is faced with the challenge of reducing its costs while offering the best services. According to Becker’s Healthcare, 46 hospital and health system executives from all across the United States were contacted to learn about their plans to cut healthcare expenses. Below are some of the insights and strategies adopted by these leaders:
1. Efficiency and Quality Improvements
Cliff A. Megerian, MD, the UH CEO, attests to the significance of enhancing the quality of patient care while reducing costs. The features he outlines include Enhancing work processes for addressing incidental findings in imaging and optimizing IT environments for adequate treatment. They are committed to reducing sepsis mortality by 70% and minimizing surgical length of stay. Regarding efficiency, University Hospitals has established goals to consolidate services and maximize regional appropriateness.
2. Connecting Strategy with Operations
Peter D. Banko, the Mountain Region President at CommonSpirit Health suggests that there is a significant balance between strategy formulation and execution. His organization expects to gain efficiency at scale by correctly implementing leadership, people, and processes. The strategies include centralization of operation, systematic approach at various service delivering levels, and improvement in workforce to have merits on the cost aspect.
3. Optimizing Asset Management and Patient Flow
Shelly Schorer leads the financial management of assets including leases and other properties like clinics and office spaces when she works in the capacity of the CFO of California Division over at CommonSpirit Health. There is a need to enhance patient logistics to cut down on hospital stays and re-admission cost in their operation.
4. Reducing Workforce Costs While Improving Conditions
Greg Till of Providence explains the company has to cut costs of hiring temporary staff; therefore, they have to offer a constructive place of work for talented professionals. Acquiring technology that allows clinicians to be more effective at their work and potentially exploring different forms of care delivery will reduce costs while increasing staff satisfaction.
5. Supply Chain Optimization and Employee Wellness
The CEO of Sarasota Memorial Health Care System, David Verinder, also notes a concern is the increasing cost of supplies. His organization aims at minimizing wastage, studying cost-quality differences, and integrating health investment. Programs such as opening of an employee pharmacy and encouraging preventive health among the workforce have been recognized to drive down costs.
6. Leveraging Scale and Technology for Efficiency
Gina Calder, President of Barnes Jewish St. Peters Hospital explain on the concept of scale in its relation to raw material acquisition and power of negotiation. She also says that even with these advantages top-level priorities are set on staff retention and staff productivity. Hiring and training people and using IT solutions are the best way to achieve sustainable cost reduction.
7. Labor Expense Reduction and Automation
Beth Steele, MSN, RN, the current COO at Owensboro Health Regional Hospital, agrees on the necessity to minimize labor expenses, specifically through enhanced workforce training and technological application. In improving supply chain management processes and client relations they desire to increase effectiveness and efficiency.
8. Cost-Effective Care Delivery and Research Investments
Dr. Harlan Levine, an internal medicine physician and the President of Health Innovation and Policy at City of Hope, also emphasizes the importance of selecting ideal care settings and utilizing technology to create more value for patients and decrease expenses. The preservation of investment in research continues to be a focus because diagnostics and other therapeutic choices must enhance care outcomes.
9. Digital Health Solutions for Efficiency
According to Susmita Pati, MD, the Chief of Primary Care Pediatrics at Stony Brook University, digital health will help save a significant amount of money in the future. Applying concepts of digital process automation results in fewer tasks for physicians or other care providers, which may improve both workforce satisfaction rates and organizational productivity.
10. Reducing Agency Dependency and Optimizing Health Insurance
Michael stapleton, CEO of Thompson Health, believes in minimization of the number of outsiders he employs because he has managed to reduce the agency expenses by 50%. He also perceives what he calls elasticity opportunity on how to cut costs on self-funded health insurance plan.
11. Centralizing Pharmaceutical Operations
Madeline Camejo, Chief Pharmacy Officer at Baptist Health South Florida, highlights the advantages of consolidating the point of medicine storage and packaging. This strategy is cost effective and enhances patient safety while freeing the pharmacy staff to concentrate on clinical activities.
12. Strategic Partnerships and Supply Chain Management
Eric Tritch, the VP of Supply Chain at UChicago Medicine, saves more than money; he aims at achieving margin improvement. In this respect, they want to mitigate inflation risks and find offsets in collaboration with suppliers in terms of revenue generation and cost control.
13. Appropriate Treatment Settings
Desi Kotis, the Chief Pharmacy Executive at UCSF Health agrees by pointing out that there is value in caring for patients in the right setting. Transferring some of the treatments such as chemotherapy, to outpatient or home-based settings could dramatically bring down the costs and enhance patient outcomes.
14. Addressing the Opioid Crisis to Save Costs
Holly Geyer, MD talks about the Chair of Mayo Clinic Opioid Stewardship Programme discussing the economic effect of opioid crisis on health-care system. Her program intends to respond to this crisis through these interventions thus bringing down costs linked to opioids.
Conclusion
Ranging from labour management and supply chain management to technology acquisition and partnership, healthcare executives are taking various measures to cut healthcare expenses. Their views complement each other as they call for an integrated model of care systems that maintains both, feasibility and quality necessary to become steady when the healthcare system is constantly evolving. As healthcare continues to evolve, these approaches may be the model for organizations preparing for 2024 and beyond.
