Healthcare leaders are embracing transparency and process redesign while striving to better grasp their true cost of care.
This article first appeared in the June 2016 issue of HealthLeaders magazine.
The strategic imperative of achieving sustainable cost control is one of the healthcare industry's important challenges—without a clear and effective strategy, many healthcare organizations will find their financial viability at risk. Traditional cost containment and revenue cycle approaches based on purchasing and supply-chain efficiencies and enhanced revenue collection activities can only achieve so much, particularly in the face of declining reimbursements and requirements for higher levels of clinical performance.
This is not to say these activities lack value—far from it. Driving down costs through frugal spending and more efficient operation on one hand, and maximizing revenue collection through the use of disciplined practices and IT-based capabilities on the other, are a necessity. But there are other more sustainable avenues to pursue, such as process redesign and care standardization, to name just two.
Jonathan Bees is the senior research analyst at HealthLeaders Media.