According to the Advisory Boards Annual Healthcare CEO Survey, cost control is now the healthcare system CEOs’ number one priority. This survey was nationwide and took place between December 2017 to March 2018. Of the 33 concerns outlined in the survey, 62% of the CEO’s surveyed chose cost control as the one of utmost importance. Emerald Coast Medical Association would like to help our members apply the principles necessary to address cost control in your practice and hospitals.
Investing in the people and processes serving in operational roles in your practice or hospital can prove to be successful for cost control for your healthcare facility. This investment does not have to be financial; it merely has to be putting time into these people and operational roles. There are three different ways your healthcare facility can “invest” in cost control.
Data measurement is an easy way to set goals to start the process of facilitating cost control. Setting goals for your team to work toward and to analyze the current state of your facilities departments is a significant first step towards working to getting your cost under control. Doing so will allow you and your team to align with the organization’s goals, establish milestones, and report progress. Pairing activity reports with data makes your information more precise and error-resistant, while also removing biases from discussions. Data provides concrete evidence, so that costly mistakes can be avoided while making better decisions and more accurate predictions on how to move forward with the company.
Another way to invest in cost control is employee engagement. Enhancing revenue can be an easy way to up employee engagement. An employee who feels valued is always more likely to go above and beyond in their work than an employee who does not. Lost productivity stemming from employee disengagement can cost a company anywhere from $450 billion to $550 billion annually. Asking your employees how they want to grow and what their goals are can spark an engaging conversation that will lead to them being more productive.
Not having the appropriate staff for a specific position can be an easy way to lose money. It is not uncommon for a facilities technician to be promoted to a leadership position just because of seniority rather than having the appropriate training, mentoring, or leadership ability. This mistake can lead to high turnover, a loss of organizational knowledge, and an increased reliance on external service contracts that will cost organizations far more than they would like to spend. Having to use outside services for help costs more money than it would to hire, train, and develop an already active employee. Investing in employees by either giving them the correct training or hiring someone who is ready for the job they are being recruited for can save tons of money.
Each of these actions has little to no cost for your organization, and can only help to improve your facility and patient care. These principles will help set your practice or hospital up for success while also saving money.
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