2nd
June
2016

Top 3 ways hospitals can reduce spending

One of the biggest concerns health care providers face on a daily basis is addressing operating costs. Everything from buying medical supplies to billing patients and paying staff can add up to a confusing mess. If you're looking for ways to reduce the amount of money your hospital is spending, try these four tips:

1. Nail down your exact spending
It's surprising how many health care providers are not keeping track of every single penny they spend. This bad habit can quickly become a black hole that eats up thousands of dollars and even leads to debt. Your hospital, clinic or practice must have a master process or system that keeps track of all finances. The very first step to reducing operating costs and increasing your ROI is to fully grasp where your money is going. You may notice discrepancies upon viewing financial data for your facility, and those require immediate attention. Once you've squared everything away, compare your spending with that of other health care providers. You might find troublesome areas that you can cut back on, like buying too many unused medical supplies or paying for upkeep on outdated machines. 

2. Automate everything
Global Healthcare Exchange, a supply chain management company, noted that avoiding manual processes in the medical field is key to reducing costly errors. Everything from invoicing to sharing and storing patient images should be done automatically.

"Avoiding manual processes is key to reducing costly errors."

While this may mean your facility needs some technological upgrades, with the right choices those systems with a high upfront cost will more than pay for themselves in the errors they prevent. Plus, using automated processes provides a more secure way to store data. Keeping everything in one place that is easily reachable via a cloud server will make your hospital spending more transparent. It'll be easier to spot and address problem areas.

3. Use the latest technology
When you are utilizing outdated tech, from computers to HIT management software and X-ray machines, your facility will suffer. Newer options of these and other devices offer much faster and more efficient processes and abilities. You'll be able to cater to more patients and address physician needs at a rate much better than with your old tech. Plus, it's much less frustrating for nurses and other staff to use charting procedures, imaging machines, etc. that are up to par with today's clinical standards. A happy health care staff is a happy administrator!

Healthcare spending can quickly get out of hand without the proper tracking techniques. Using automated systems, like computer programs and finance software, can make tracking your hospital or providers money flow much more transparent. Then, armed with that knowledge, you can gain insight into where to make some purchasing changes.

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