Editor’s Note: This article was originally posted on Community Hospital Corporation’s website.
Tackling an operational assessment may seem daunting. While the process is complex, a good place to start is by examining outsourced contracts, as some may have been in place for years and can be renegotiated or even eliminated. Then, move on to the following cost-reduction and revenue-enhancement strategies, which can help ailing hospitals get turned around and headed toward long-term sustainability.
Evaluate labor costs
Labor’s share of total hospital expenses has increased in the last 10 years, and a tightening labor market and other factors continue to drive up costs. A thorough review of productivity is critical in order to manage costs that are controllable. A productivity tool can help set productivity targets and also assigns accountability for meeting those targets and controlling labor expenses. Productivity evaluation also indicates the right level of staffing by shift and day for improved efficiency. Click here to continue>>
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