Fight Back against Narrowing Margins

In the last decade, the rise in health care costs has significantly outstripped the increase in reimbursement levels. However, there is good news for hospitals working to reduce costs by improving quality of care. Preventing hospital-acquired infections, for instance, can reduce labor, supply and pharmaceutical expenses by millions of dollars a year.

By focusing on waste reduction, rather than across-the-board budget cuts, hospitals can also cut costs while improving the quality of care. By examining the following areas, many hospitals can reduce waste by 1 to 3 percent per year:

• Clinical quality: coordination of care, reduction of complications and readmissions
• Staffing: turnover and recruitment, workplace injuries, staffing efficiency
• Patient flow: matching capacity to demand
• Supply chain: volume purchasing
• Mismatched services: unnecessary procedures and hospitalizations, end-of-life care

Efficiency Consulting

IHA has developed a unique partnership with Purdue University to help hospitals identify opportunities to improve their efficiency and reduce waste. Learn about Purdue Healthcare Advisors »

Supply Chain Optimization

IHA members can lower supply costs through volume purchasing. Learn more about supply chain improvements through Provista »