Why you should focus on cost growth, not cost cutting

From 12 'Must-Do' Strategies for Protecting Future Margins

Topics: Cost Management, Margin Performance, Finance, Health and Wellness, Benefits, Labor Expense, Staffing

with Christopher Kerns

August 12, 2013  |  Health Care Advisory Board

Strategies for Smarter Cost Control

It’s unrealistic to expect to cut costs enough to balance your books five or ten years from now. In the past, organization-wide cuts above 5% already felt harsh—so how much would you need to cut in the future to break even?

To protect your future margins, make changes that will slow down cost growth—such as creating a dedicated observation unit or minimizing care variation in the hospital and ambulatory care sites.

Our new research briefing explores six innovations that will reduce the growth rate of your labor and supply expenses in the long term.