As financial pressures are faced by healthcare organizations, traditional methods of cost cutting are used by many hospitals for saving money by looking at staff reductions and layoffs. Many hospitals are finding methods for reduction in cost by methods of lean management which don’t need layoffs and also can improve the quality for patients.
Lean is the best alternative for layoffs. In this, everyone is encouraged for participating in improvement of process and finding interesting and creative methods of saving money for organizations of healthcare for avoiding those unwanted efforts of cost slashing like layoffs. There is no cost reduction for long-term with layoffs.
There are following ways of managing the finances in healthcare organizations.
1. Cancel or delay expansion and construction
According to trends of last years, lean is used by hospitals for increasing capacity with the use of available space and current equipments. In lean, existing resources are used in better way as alternative for increase in capital spending. In some hospitals, in the process from improvement to flow of patient, delays are prevented from registration process to discharge process and in this way; the rate of utilization of MRI machines of hospitals has increased from 40% to 60%. So, they have no requirement of purchasing more equipment. So, in this way, finance can be managed in hospitals.
2. Reduction in length of stay
This doesn’t mean that patients should be pushed to home before they are fine and ready to go home. But reduction in length of stay is attained by prevention of errors which can extend a stay of patient or delay the discharge of patient when he or she is ready to discharge. Due to poor planning, miscommunication or when nursing homes or families are not ready to take on the patient being discharged, stay of 4 days in hospital can turn into 5 to 6 days. These things are not issues due to medical problems, but patient’s extend can cost a lot.
3. Reduction in unnecessary diagnostics and testing
Many hospitals are reducing the usage of diagnostic imaging and lab testing in inappropriate ways. For instance, it has been shown by medical evidences that if a patient reaches hospital with pain in back often, he needs physical therapy but not fast access to CT scan. So, healthcare organizations are helped by ACOs to get benefits from efforts of cost reduction of their own.
4. Reduction in errors and delays in billing
There are large amount of delays occurring in billing which includes many people who are involved in different parts of process of billing. If in better flow, people hands off work to next immediate person in chain, bills will go out in some days, not in weeks. Billing should also be done properly because in case of any mistake or no following of proper pre authorizations, hospitals may have to suffer from revenue loss.
5. COSTAR called computer stored ambulatory record
This system stores electronic record of patient which includes information of physical examines; medical history and diagnoses. So, maintenance cost decreases.
6. RMRS called Regenstrief medical record system
It helps save money by storing 30 years of data of patients from visits in emergency department, stays in hospital and results of lab tests.
Hospitals should maintain proper finances else they will require debt management solutions. Click here for more info on this.