Cost Efficiency: Minimizing Wastage
Within a healthcare system it’s not uncommon to see more than a 30% wastage. Wastage refers to departments within the healthcare system that are not being fully utilized. If you’re not seeing volume to company, many departments and employees within those departments may be underutilized as there is low patient flow. Minimizing wastage has been seen as an indirect key component to increasing profits.
In business, we’re constantly looking to justify our time and find the right balance. lets look a few methods that we know of that could potentially boost your cost efficiency, increase income and minimize wastage.
- This method is like the McDonalds method of healthcare, it involves gaining higher volume by lowering costs and accepting all that lands on your doorstep. Being this well-versed may seem like a feasible obvious option, but it may not be the best option for you. There are a few hindering factors that could make this high volume approach counterproductive for your company. Quickly increasing your volume through accepting any and all low payment plans, could lead to delays in the system, lower employee satisfaction, perfunctory employee performance and compromised care, and in healthcare, care is everything.
- Another option is to put a focus in a specialty, offering only specialty procedures. This will avoid much of the unexpected costs that come with a full service hospital. It will allow you to pre-plan each business day. If you have scheduled procedures, your doors are open and you can use staff accordingly and efficiently. When you’re not providing services your doors are closed and you’re not losing income. While this is also a viable option, this model could be too specific or narrow approached and might not aid in solving the community health problem, as much at it profits your company.
- The first two options are more extreme business methods, and with market uncertainty within healthcare, there’s maybe a better option that lands somewhere between the first two. A micro hospital is the perfect example and might be a great solution if you’re looking to best serve your community, provide quality care, while still being somewhat specialized with a more broad offering. This high care, high cost approach provides all the luxuries for personalized care people crave without overwhelming the system.
It’s hard to know which model may be right for you. With the experience and first-hand knowledge a healthcare management company can help guide you through these important decisions. A healthcare management company will make sure your company is being care and cost conscious along the way.
Whichever business model you end up following, it’s important to keep in mind the patient population is changing. Patients are more aware now than they have ever been, they know their options and are demanding transparency and communication. In today’s world, healthcare companies must deliver, and nothing less than exceptional care. While there will always be deficiencies, there’s little to no room to effect patient care.