Best Practices for Bending the Expense Growth Curve
This is a preview of restricted content.
Full access to this content is reserved for Advisory Board members; we invite you to learn more by contacting us.
Did you know that the average hospital could see margin improvements of 25% or more by using reverse auction technology to manage multiple vendor bids? Or a 10% to 15% increase in margins through more effective use of third-party administrators?
Labor and supply costs currently account for two-thirds of hospitals' total costs and are expected to continue rising at nearly 5% a year. To combat this problem, hospitals must move beyond one-time cost control measures to create sustainable cost improvements.
This collection features best practices for bending the expense growth curve, including tactics for:
Work with physicians and vendors to reduce variation among preference items to reduce supply cost spending.
Reduce long-term labor cost spending by conducting principled headcount reductions and optimizing benefit spending.
Create sustainable cost reductions by boosting staff productivity and reducing reliance on premium labor.
More from the Medicare Breakeven Project
- Succeeding under value-based purchasing
- Achieving best-in-class documentation
- Bridging the gap on ICD-10 conversion
- Minimizing losses on readmissions
- Targeting top-DRGs for LOS reduction
- Rationalizing utilization across the continuum
- Ensuring effective care transitions
- Implementing LEAN design principles
- Managing an effective medical perimeter
- Securing physician referral networks
- Fostering growth in the ambulatory environment
- Evaluating service line performance
Managing Supply Costs