Healthcare CEOs Reveal Cost-Reduction Strategies
From the data generated from these mapping exercises, Paulus says team leaders are empowered to "eliminate what you can, and what you can't eliminate, you automate. Third, if you can, you delegate to a lower-level employee, and fourth, you engage patients in what they can actively be integrated into," he says. "Those are foundational components. From that data you get surprising insights."
And surprising cost cuts. Paulus's teams go into every redesign with a 15% cost reduction target in mind. The emergency department and medical-surgical departments have already undergone this redesign, with the OR and critical care on the horizon.
What's important about all of these activities, and they are a small sample from more than 20 CEOs who participated in our discussions over two days, is that they're at least co-led by clinicians, not executives with no medical training.
And by effectively preparing early for what others will do to you, that is, reduce your revenue stream through reimbursement cuts, you'll be ready to survive and thrive in a new, less generous reimbursement environment.
This is just a taste of the insights gleaned from the 2012 CEO Exchange event that we'll be sharing with you in the coming months through a range of Impact Analysis reports. Look for one on Sustainable Cost Reduction Strategies, in which I'll share dozens more ideas with you in which your peers are succeeding. I can't wait to get started.
Philip Betbeze is senior leadership editor with HealthLeaders Media.
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