Healthcare organizations worldwide are facing numerous challenges. With cases of COVID-19 and Influenza rising, healthcare facilities are being hit with significantly higher patient volumes. By contrast, elective procedures that drive revenue are declining.
In addition, costs are skyrocketing. Some healthcare facilities can’t afford Personal Protective Equipment (PPE). As a result, hospitals, especially in remote areas, are closing at alarming rates across the United States.
Many healthcare facilities are responding to these challenges with cost cutting-measures. However, some of these measures are proving to be counterproductive:
Maximizing patient volume to generate more revenue is negatively impacting patient care. It’s also creating staff burnout and creating even more pressure.
Underinvesting in space and equipment to cut costs is leaving healthcare facilities unprepared for procedures. Costs are rising because staff and patients are sitting idle due to a lack of equipment. It may seem counterintuitive, but the right investments reduce long-term costs.
Firing support staff to reduce salary expenses is only increasing excess patient volume and staff burnout. It’s also leaving some space and equipment underutilized.
Let’s look at some practical cost-cutting tips that work in the long term:
Table of Contents
1 Broaden Your Focus on Purchasing Prices
Joining group-purchasing organizations doesn’t always work. Studies suggest that spending on supplies varies greatly because buyers focus more on overall prices rather than how they consume supplies.
2 Utilize Technology
Instead of firing staff or underinvesting in essential equipment, use technology to find efficiencies and improve workflow. The right health and social services software can help you deliver personalized care with data tracking and streamlined service delivery through customized action plans. It can also accelerate your impact and raise your revenue with outcome-based reporting for funders and donors. By taking your programs to the next level, you can raise donations and hit higher fundraising goals.
3 Invest In Your Staff
Studies find that around 40% of employees who don’t receive proper training will leave before their first year is complete. You can reduce turnover by investing in your staff. Offer training and development opportunities to reduce long-term turnover.
Another reason staff members are leaving is due to burnout. Ensure that the work culture at your facility is positive and staff have enough breaks and amenities between work to manage their work schedules.
Please also offer recognition to your team. Openly giving gratitude to your team can keep up morale and improve retention.
Investing in your staff may seem counterintuitive but considering the cost of finding new employees and training them. Incentivizing staff to stay can be more cost-effective in the long term.
4 Hire Patient Transporters
Patient transporters shift patients that need assistance from one place to another in your healthcare facility. They may help patients out of vehicles to registration, from beds to therapy, and rooms to treatment areas. They also help with transporting samples, supplies, and equipment.
Hiring patient transporters will optimize patient flow, minimize bottlenecks, and reduce free up costly resources.
In an effort to reduce costs, healthcare facilities are taking counterproductive steps that are raising expenses and lowering the quality of patient care. Invest in the right tools and systems to lower costs in the long term and enhance care delivery.