Healthcare is the most noble…the most altruistic enterprise in the world. It involves a ton of commitment and selfless devotion. However, it is also a business and has to remain viable and profit-making in order to be sustainable in the long run. Cost-efficiency is the secret mantra that can assure that your hospital makes profits and stays viable. On one hand, a hospital has to meet the growing expectations of their potential patients. On the other hand, a hospital has to set reasonable fares to match the prices of the burgeoning competition in the market and to stay in the running…it is truly a walk through a minefield. In the post-pandemic times, in hospitals are expected to face multiple financial and fiscal challenges. You can stay afloat in these turbulent seas if you adopt certain proactive measures.

1. Scrutinize your medical equipment contracts

A hospital needs a plethora of medical equipment. These have to be maintained, updated, repaired and replaced in a timely manner in order to stay in an optimal state of functionality. Hospitals procure different machines at different times from different vendors and enter into different agreements for their maintenance. Having multiple vendors is a colossal waste of money.  You can scrutinize all these different contracts carefully and zero in on the most cost-effective one. If possible, try to merge all these maintenance contracts into one bundle and award it as a single package to a reasonable and reliable vendor who is willing to offer you a good discount. Be sure to check up on the vendor’s credibility and capability before appointing him/ her.

2. Digitalize wherever possible

Cut down on the spending of recruitment, training and payment etc. of extra man force by taking recourse to digitalization wherever possible. For e.g. Invest in a dependable hospital information system to curtail the need for manual entry of records. This will not only save time and energy but also money in the long run.

3. Outsource the non-core strength departments

Sometimes, certain non-medical departments like canteen services or housekeeping might be making a dent in your budget. Outsource these non-core services to reliable partners instead of investing your efforts, time and money in running them inhouse order to increase cost efficiency.

4. Minimize turnover

There is a great lacuna in the healthcare segment…there is a dearth of qualified and skilled healthcare professionals at every level. Training, recruitment of new staff can not only lead to a drain of resources and time, but also compromise on the quality and continuity of patient care. Improve cost efficiency by minimizing workforce turnover. You can achieve this by offering your employees good incentives like free healthcare packages, skill workshops, flexibility in working hours, loyalty bonus etc. Training and development opportunities can go a long way in reducing attrition and long-term costs. Strive to make your hospital an employee-friendly place so that they derive maximum job satisfaction. This will build loyalty and a sense of belonging and assure that they don’t shift jobs.

5. Optimize operational protocol

Review and optimize each stage of operational strategy especially SOPs, pharmacy inventory, supply chain, revenue cycle to trace wastage and eliminate them and understand bottlenecks and clear them. Get insights and improvement suggestions from third-party experts and convey them to both your medical workforce and your support staff. Identify gaps, variables, inefficiencies and correct them before they diminish your cost-efficiency.

To summarize, hospitals are under tremendous pressure to deliver patient care at the most reasonable costs without any compromise in quality. You will have to make some changes if you want your hospital to score high on cost efficiency and attain sustainable growth. If you need any expert guidance in this sphere, be sure to consult Hospertz, a leading hospital consultancy firm of India.

Blog has been written by Dr. Vishal Jadhav, a veteran in the field of hospital consultancy with a rich experience of more than 20 years and founder of the Healthcare Consultancy Firm, Hospertz.

Dr. Vishal Jadhav, Director
hospertz@gmail.com
+91 9867712705/ 9820833149