Which Costs Should You Cut First In Healthcare?

Which Costs Should You Cut First In Healthcare?

Daniel Hall 16/02/2024
Which Costs Should You Cut First In Healthcare?

Cutting costs in any industry and in any business requires great care and forward-thinking.

While you want to be able to make meaningful differences in your expenses for the health and survivability of the business, you don’t want to make any cuts that may later prove fatal. In the healthcare industry, the risk si great as, put simply, there are very few costs that don’t have some kind of effect on the patient experience. 

Here, we’re going to look at how you can cut some of the costs of running the business in a way that allows you to preserve the patient experience as best as possible.


Manage Waste as Best as You Can

Loss can be pretty high in medical settings, where your team goes through all manner of resources and supplies in short order, and job stress can be high. However, waste can start to build up and cost the business, so care should be taken to ensure that your staff is not being unnecessarily wasteful with the supplies at work.

Talk to Your Vendors

Most medical practices work with a host of vendors to supply everything that they need to run, including not just medical supplies, but office supplies, cleaning supplies, scrubs, and more. The vendors and suppliers that sell these might be able to offer a little wiggle room, but you have to ask them, first. Make it clear that you want to establish a truly long-term relationship with them, or even lock yourself into a contract, and you might find that they’re willing to reduce the cost per item in order to secure reliable income.

Make a Move to Telemedicine

It’s not a solution that’s going to work for every practice. Some businesses are built on treatments that require you to be in the same space as your patients, and there just isn’t any getting past that. However, for others, looking at the telehealth and telemedicine trends that have been transforming the industry could be a very viable situation. By moving to a more digitally connected setup, you could reduce your reliance on physical space for patients, which could see you moving into a smaller and more affordable location. What’s more, the ease with which you can connect with your patients digitally could help you see more per day.

Reduce Your Equipment Costs

The medical equipment that your practice hosts can be vital to the treatments and services that you are offering, but they can also be expensive. If there are any that you are not using, or underusing, then selling them to free up some cash, or even if to lease them on a more as-you-need-it basis could make financial sense. Similarly, when procuring new equipment, it might be better to opt for options like used CT scanners rather than having to buy them brand new. Just be sure that you take the to vet the sellers and ensure that you are getting quality equipment.

Automate More of Your Processes

If your team is starting to look a little overworked, and you feel like you might need more staff to fill the gap, pause for a moment. Rather than going through the expensive process of hiring new staff, you should instead see if you can free up existing staff time. The best way to do this is to look for the automation tech that can take over certain processes, especially in inventory management and health record management. Automated tools still need some oversight, but if it stops you from having to take on the expenses of another employee, that’s a small price to pay.

Consider your Staffing

Unfortunately, at some point, you have to consider the staff that you currently have and wonder if you really need as many at your disposal. A lot of hospitals and practices make the mistake of hiring a permanent worker to deal with temporarily high demand, for instance. Instead of doing that, you should look at the medical staffing agencies that can help you fulfill your needs on the basis that you need it. Making any staffing cuts has to be done with the utmost care, as well, as not only can it affect your patient services, but it can affect the morale of the remaining team, as well.

How much you might have to sacrifice, even if temporarily, is going to depend on how much money you need to have at your disposal. Hopefully, the tips above help you find the best places to start with your cost-cutting efforts.

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Daniel Hall

Business Expert

Daniel Hall is an experienced digital marketer, author and world traveller. He spends a lot of his free time flipping through books and learning about a plethora of topics.

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