Tips to reduce costs in healthcare set-ups

Managing costs in healthcare systems is very unpredictable because of many twists and turns encountered in medical practice. Providing best possible patient experience and at the same time focusing on costs is as difficult as walking on a tightrope.

Cost reduction techniques that may work in other business modules cannot be leveraged to healthcare because any compromise on quality is unacceptable. Hence cost-cutting in spheres like skilled workforce, advanced equipment, state-of -the- art infrastructure or medical supplies can lead to a lacuna that can cascade into a health disaster.

Strategic cost reduction is possible in healthcare set-ups too but has to be done with stepwise analysis, planning and implementation.  

Some tips that may help you reduce your operational costs are

• Outsource : If you feel space is a tight constraint you should think of outsourcing certain departments in your healthcare set-up like laboratory set-ups, canteen services, billing departments etc. This can reduce your investment for the site and space of your facility.
• Lease instead of buy : Medical equipment like machines, tools etc. are extremely expensive. Another thing to remember is that they get upgraded at the blink of an eye because of rapidly evolving technology. This can make your purchase obsolete within a few years and waste your funds. Instead of buying medical equipment, try to lease them from reliable companies.
• Set cost-saving protocol :Train your staff in the optimum use of resources to cut down costs. Something as basic as switching off lights and fans in empty rooms can work out to be big savers in a multi-bed hospital.

• Reduce attrition : Replacing a valued and skilled employee and recruiting and training a new one can be a cumbersome and costly process. Try to reduce turnover by providing your workforce with a good work environment, incentives, in-house training, medical insurance and other allowances.
• Negotiate for the best deals : Be it for equipment maintenance or for civil and maintenance service, be sure to do your research about the vendors and enter into contracts with the ones offering the best long-term deals.
• Incorporate supply chain improvements : Making changes at every step of your supply chain can lessen your inventory and warehousing costs and lead to cost reduction in the long run.
• Use renewable energy wherever possible : These are specific to bit hospital set-ups. Installing solar panels can reduce your electricity bills. Rainwater harvesting systems can reinforce water supply. Use power saving devices like sensor lights, motion sensing doors etc.

• Unleash the power of IT : Manually keeping records is tedious, time consuming and an administrative burden. Wherever possible, use digital systems and automation to reduce man- hours and overtime.
• To summarize, escalating costs of overheads and skyrocketing competition have made the operation of healthcare institutions a notoriously expensive affair.   Cost reduction strategies that sustain top-notch patient care yet streamline costs are difficult to juggle together. Yet a fool-proof cost reduction strategy is achievable with an in-depth study of your fund flow. A healthcare consultancy firm can help you arrive at an optimum budget-lowering plan. If you need any help in this, consult Hospertz

Dr. Vishal Jadhav

hospertz@gmail.com

+91 9820833149 / 9867712705