Cost-cutting Approaches to Medical Care

to Medical Care

Cost-cutting Approaches

Economics of Hospital & Healthcare Sector - JiyaD


The Remedy

The remedy to the cost crisis does not require medical science breakthroughs or new governmental regulation.

It simply requires a new way to accurately measure costs and compare them with outcomes.


Determining the practical capacity for employees—the denominator in the capacity cost rate equation—requires three time estimates, which are gathered from HR records and other sources:

a. The total number of days that each employee actually works each year.

b. The total number of hours per day that the employee is available for work.

c. The average number of hours per workday used for nonpatient-related work, such as breaks, training, education, and administrative meetings.

Estimate the capacity of each resource, and calculate the capacity cost rate.


Eliminate unnecessary process variations and processes that don’t add value.

Unnecessary Processes


When providers understand the total costs of treating patients over their complete cycle of care, they can contemplate innovative reimbursement approaches without fear of sacrificing their financial sustainability.

Total Costs to Cycle of Care


No illness and/or no accidents, theoretically equals, zero healthcare costs.

Reducing Need and Demand


On the societies end, managed care and doctor visits rather than visiting the ER can save plenty on their pockets.

Skipping the ER and Staying in Network


Appreciate your attention!

Cost-cutting Approaches to Medical Care

Documents

Transcript of Cost-cutting Approaches to Medical Care