Cost Reduction

Insurers, Hospitals See Different Paths to Boosting Competition

Jan. 29—Hospital and insurer advocates urged the Trump administration to take differing approaches in its quest to increase competition in health care.

Rich Daly January 30, 2018

Hospitals Have Opportunity to Save $23B While Maintaining Quality

Hospitals could reduce their supply expenses by an average of 18 percent.

HFMA December 4, 2017

Henry Ford Health System Cuts Food Service Net Cost Per Patient Day

The health system achieved a 1-3 percent cost reduction by moving to self-operated services and streamlining vendors, while adding room service and healthier food options.

Laura Ramos Hegwer December 1, 2017

UI Health Cuts ED Homeless Patient Costs by 45 Percent

The Illinois public hospital pays $1,000 per patient per month to an outside agency to house 27 homeless patients in furnished, one-bedroom apartments. This investment is significantly less than the nearly $3,000 per patient per day that UI Health and managed care organizations were spending on some chronically homeless patients.

Laura Ramos Hegwer December 1, 2017

Using Physician Assistants Can Save Costs

Healthcare executives responding to a recent survey overwhelming agree that transforming costs is a “significant” or “very significant” need, but more than 50 percent have no cost reduction targets for the next five years or have a goal of 1-5 percent—a range that is far below what will be required to transform cost structures.

HFMA October 3, 2017

Using Artificial Intelligence to Reduce Long-Term Care Costs and Improve Patient Outcomes

A two-year study found that technological support for assisted living facility caregivers resulted in a 45 percent increase in patient aging in place, allowing for better quality of life for residents and cost savings of approximately $50,000 per patient per year.

Piali De, PhD October 3, 2017

Striving for Cost Optimization Instead of Cost Cutting

Cost optimization involves more than cutting a set percentage from the traditional targets, such as labor, real estate, or IT. Cost optimization is an enterprisewide effort, requiring leaders to reset their operational strategies and align with value-based payment models.

Jacques Mulder October 3, 2017

Benchmarking Helps OSF HealthCare Save $160M Annually

Spurred by a drop in operating income, OSF HealthCare embarked on a clinical and financial improvement initiative that has saved the organization $160 million each year.

David Stenerson October 3, 2017

Is There a Business Case for Readmission Reduction Efforts?

An analysis found that hospital readmission reduction programs inconsistently provide net savings to health systems. The average net savings per heart failure patient was $972, but the study found a $169 net loss per patient among general populations.

Rich Daly August 1, 2017

Reducing Patient Harm Cases Helped N.J. Hospitals Save $641M

The New Jersey Hospital Association coordinated learning collaboratives to help hospitals share their best practices for reducing patient harm while saving millions in unnecessary costs.

Laura Ramos Hegwer August 1, 2017
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