Are CFOs examining these unsuspecting costs?
CFOs have a lot to deal with, and sometimes minor items might fall through the cracks. From clinical waste inefficiencies to hefty non-clinical spend, see where CFOs can turn their attention to reduce costs.
Clinical Waste
From overtreatment like repetitive lab tests and duplicate imaging studies, to unnecessary medicine usage and care coordination failures, clinical waste can quickly devour a health system's budget.
Closely collaborate not only CMOs, but lead physicians and physician groups to develop a thorough understanding of where medical inefficiencies and clinical waste lie, and uncover clinical and financial stewardship opportunities.
Check out these resources for guidance on how CFOs can reduce clinical waste:
Aligned Intervention: How MultiCare Saved Millions By Targeting Clinical Waste
Infographic: 3 CFO Tips for Cutting Clinical Waste to Reduce Costs
Revenue Cycle Examinations
Financial leaders should ask themselves what adjustments can be made to their system’s most valuable, mission-critical areas.
The Revenue Cycle Management Technology Adoption Model is a free assessment tool that may be able to help health systems prioritize and adopt RCM tech to improve outcomes. Miguel Vigo, chief revenue officer at UC San Diego Health, shared the significant improvement he saw in his organization after using an RCM assessment tool, notably, the system’s point of service collections increased by over $2 million dollars in a single year.
Focus on realigning resources to the most valuable and critical parts of the organization, doing so can create a straightforward map towards solutions for CFOs’ biggest challenges.
Check this resource for finding savings in RCM:
How UC San Diego's CRO Leveled Up RCM Efforts
Non-clinical Spend
Studies show that a hospital's nonclinical spending can climb as high as 30% of overall spending. Control the controllable. As inflation lingers, labor costs jump, and tariff threats loom, CFOs can examine their health system’s non-clinical spend to help reduce costs. From landscaping to signage, examine what items can find a lower price tag through different vendors and different business strategies. Minor items can quickly add up to bigger cost savings.
Check out this resource for guidance on how CFOs to reduce non-clinical spend:
The Secret CFO Strategy for Cutting Cost
Marie DeFreitas is the CFO editor for HealthLeaders.