Non-labor Cost Reduction Strategies

In the healthcare ecosystem, non-labor expenses alone contribute to about 40% of the overall operating costs. There is a constant battle between labor and non-labor cost reductions and the evolving challenges in budget allocations that may lead to inefficient financial and operational results. To unlock the full value of non-labor cost reduction, healthcare organizations must adopt a more holistic approach by evaluating the total cost of a product, supply or service. Here are the top considerations while analyzing the expenses.

6 Key Questions and Considerations in Non-labor Cost Reduction

To begin with, is the product or service absolutely necessary?
Comparison against an equivalent product/service that might offer the same value at a competitive pricing
While at it, consider the possibilities of a more efficient way of product or service delivery
Ensure that the right team is deployed in the decision-making process
Consider strategic reimbursement models that maximize the product/service utilization
Finally, are you realizing the maximum value for the product/service offered?

Conventional non-labor cost reduction strategies are siloed providing only partial solutions and might likely negatively impact the long-term financial goals. To achieve the maximum benefits of the non-labor expense management process, healthcare organizations need to get a 360-degree view of the overall methodologies, strategies, tools, and infrastructure—integrate IoT and AI-powered solutions to drive standardization and maximize utilization of products and supplies.

The SolvEdge Advantage

Our partnership with clients spanning an array of hospitals, practices, payers and health systems proves that we can generate a non-labor cost reduction of about 5-10%. Our TripleAim approach (improving Clinical, Operational and Financial efficiency) including the Non-labor cost reduction programs offers holistic advantages like—360-degree view and insights into the non-labor cost management process, accelerated financial impact that drive sustainable revenues and more. From mitigating the impact of excessive administrative and operational cost burdens to the standardization of operations across the care landscape—our comprehensive strategies are designed to control overhead expenses, identify and eliminate hidden costs, and drive significant cost savings across the care spectrum.

Also Read:

7 Fool-proof Ways to Improve Practice Revenues

Top Tactics to get Upfront Healthcare Reimbursements during COVID-19: Accelerated and Advance Payment Program

Digitizing Self-Pay Collection in Healthcare to Accelerate Providers’ Revenues

How do Care coordination Solutions Impact your Financial Outcomes?

Medicare Physician Fee Schedule 2021: CMS Update

About SolvEdge

From our humble beginnings as a healthcare start-up—to becoming a full-blown healthcare-exclusive technology solutions provider, our journey has been quite a remarkable one. Today, SolvEdge is a leading-edge Healthcare services and solutions provider—trusted by 450+ Hospitals, 3500+ Physicians and millions of patients across the globe. Our key offerings - RippleCare, JoinDr. are conceived with passion—by a highly qualified resource team of experienced technologists, PhDs, doctors and other domain experts, who work together to deliver best-in-class solutions.

The SolvEdge healthcare framework is revolutionary because our approach is based on an absolute dedication to insight-driven analytics on financial outcomes and expenses. Hundreds of healthcare organizations have saved millions of dollars working with SolvEdge digital healthcare technology solutions in identifying and reducing costs effectively. Our attention to detail and rapid execution has helped save costs, time and accelerate efficiencies for our clients across the globe. To discover saving strategies that can help your organization lower labor costs during the COVID-19 pandemic—without cutting your workforce
talk to our team.