Are you struggling to keep the expenses at your hospital under control?
You’re not alone. Just as consumer healthcare costs are rising, hospitals are dealing with rising expenses and many will face greater cost containment challenges in 2018.
Cutting expenses without jeopardizing the livelihood of employees or patient safety is a serious challenge, but it can be overcome.
Read on to learn five ways you can cut hospital expenses to keep the business running profitably!
1. Employee Healthcare Costs
Putting employee health first should be a priority at any hospital. You might be surprised that this is the first expense mentioned on this list.
However, by implementing wellness and disease management programs for employees hospitals can actually cut healthcare expenses while improving employee health.
For example, a wellness program for chronic illnesses like diabetes can help employees manage their health.
A healthier lifestyle will mean fewer trips to the doctor or hospital, fewer health incidents, and fewer insurance related costs for your hospital.
2. Shipping Costs
By keeping a closer eye on inbound and outbound shipping, hospitals can reduce expenses from the delivery of surgical supplies, equipment, and medicine.
Rising shipping expenses are often a result of poor accounting.
To remedy this issue, prepare a separate coded section for shipping, rather than lumping costs into the general hospital ledger.
3. Landscaping Expenses
Improving the irrigation systems in your hospital will cut down on water-related expenses.
By removing dying plants that no longer need sprinkler attention, your team can reduce water waste that drives up bills each month.
4. Inefficient Energy Costs
Speaking of inefficiencies, energy costs can get out of control quickly in large hospital settings.
Remove unnecessary lighting. Reduce bulbs in light fixtures. Reduce usage in areas that don’t need to be lit at all hours. By doing so, you can cut down on this expense right away.
While making the initial investment to join the ranks of energy efficient hospitals may seem daunting, the payout in savings can be enormous.
5. Proper Waste Management
Last but not least, monitoring of hospital waste is another way to cut down on unnecessary expenses.
Hazardous material, such as needle sharps, is more expensive to process. Properly sorting between hazardous material and non-red bag items can help reduce costs.
Wash scrubs and jackets in order to reuse these materials, rather than replace them.
Another way to reduce waste management costs is by monitoring food waste. Start by monitoring the amount of prepared food versus food that is thrown away.
Doing so will allow the kitchen staff to adjust preparation practices. The goal should be reduction of the amount of food wasted each month.
Keep Your Hospital Expenses Under Control
By implementing these five cost-cutting strategies, you’ll see success in keeping healthy hospital margins!
These expenses are just the tip of the iceberg, so talk with your team and get creative to decide what hospital expenses you can cut and which you can’t.
Do you still need help managing your healthcare costs? Contact us and let’s discuss how we can help!