Running a healthcare business is an extremely challenging task, and modern landscapes and the economy are adding extra challenges to make it even more complicated. The reality is that providers need to be able to be sustainable without compromising on care, standards, and equipment to deliver the results and treatment standards needed. This post is going to look at some cost-saving measures to explore, which can provide some much-needed relief for stretched budgets and alleviate the financial burden on healthcare administrators.
Energy and Infrastructure Efficiency
Energy is an often overlooked area when it comes to spending, but healthcare is amongst the biggest and most energy-intensive facilities in the country. According to the US Department of Energy, healthcare buildings spend in excess of $6 billion annually on energy.
Small changes like upgrading to LED lighting using smart lighting and changing to energy-efficient HVAC systems can offer significant savings over the course of a year. And when you make use of any available tax credits, you can save up to 20%.
Group Purchasing
Group purchasing is when multiple entities combine their purchasing power to obtain better pricing. And they can be extremely effective.
The Healthcare Supply Chain Association reports that GPOs (group purchasing organizations) can reduce costs by around 10 to 18% which can make a substantial difference to the overall budget.
GPOs can be used for many types of purchases, but especially for big-ticket items such as finding the right medical bed for sale, chairs, wheelchairs, PPE, surgical supplies, and more.
Waste Reduction and Reprocessing Equipment
Another way to save money is to reprocess single-use devices where allowed. It’s crucial to follow FDA guidelines to ensure you do not breach regulations. Reprocessing means cleaning, reconditioning, and testing equipment that has been reused on another patient, as long as it is safe to do so. Not all equipment can be reprocessed, but some can when the right procedures have been followed. This approach can reduce waste and save millions of dollars, as well as reduce the facilities’ environmental impact.
Technology to Streamline Admin
Administrative costs are a significant drain on finances in all healthcare organizations. There is no way of entirely eliminating the admin, but you can streamline it. This is where technology comes in. Electronic health records, automation tools, and AI-driven scheduling are all commonplace in healthcare and can be used to reduce inefficiencies, minimize billing errors, and increase the amount of time staff can spend with patients, thanks to redesigning their admin workload. On top of these, telehealth services can reduce inpatient appointments, allowing you to see more patients and improve standards across the board.
Preventative Maintenance
Preventive maintenance is a really simple but effective tool to help you keep down repair costs and reduce downtime, which can cost you money. Emergency breakdowns are not only costly but also impact patient care. Scheduling regular repairs, servicing, and maintenance can help you avoid this and keep things running. You can implement preventative maintenance on things like your HVAC system, hospital beds, elevators, imaging machines, and other equipment. These small actions cannot only have a financial impact but also increase safety and performance too.
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