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The Business of
Health Care Report In every business, there is always a concerted effort to increase revenues while keeping an eye on costs. Cost containment emerged as an issue for hospitals in the late 1970s and 80's when health care costs began to soar. Hospitals first addressed cost containment by joining group purchasing organizations for equipment and supplies. Quantity buying reduced costs, yet other factors also were at work. Reimbursement to hospitals were frozen and, at times, declined. Big business and insurance companies focused on managed care. Congress passed the Balanced Budget Act. And hospitals ended up with less money. At the same time, innovations in medical technology exploded. Hospitals were forced to spend money on new technology to improve the quality and efficiency of care.and to attract top-notch physicians. Cost containment strategies continue to be important for hospitals. At Texas Health Resources, we formed a series of councils more than a year ago as part of our continuous improvement program. These councils explore ways to save money by standardizing administrative procedures and purchasing arrangements at our hospitals. The results have been remarkable with almost $10 million in realized savings to date. Some specifics, use of a single distributor of pharmaceuticals for a $1.7 million savings.using LVNs rather than RNs as certified scrub technicians in the operating room with the potential to save $2 million.and $165,000 in savings by combining contracts for waste management, water treatment and energy conservation. Cost containment has really never left the health care industry as we continue to seek ways to offer improved quality of service and clinical excellence. If you have comments on health care or suggestions for topics to be addressed on this program, e-mail me at DougHawthorne@TexasHealth.org. Stay tuned to our weekly Business of Health Care reports here on TexasHealth.org and on News Radio 1080 KRLD. Source: SLOC Phase II Council notes Doug Hawthorne - DougHawthorne@TexasHealth.org ©
2001 Texas Health Resources |
