Healthcare organizations have a lot of challenges to factor that include a financial collapse, a surge in underinsured care as well as an increasing competition for quality outpatient services.
Nevertheless, hospitals can still increase their financial profitability by focusing on key areas that include the reduction of fees and an expansion on reimbursement for services. Hospitals can also reduce costs by managing vendors associated with the hospital by adjusting their current contracts to better suit the hospital needs.
Healthcare organizations should take advantage of any discounts that may be available to them; typically, healthcare organizations shy away from asking for discount, however, this does not have to be the case. Many vendors will provide discounts on volume pricing of supplies that healthcare organizations use the most by restructuring their contracts (Dunn, 2013).
Additional, if the healthcare organization has an operating room, the administrator must ensure that doctors are utilizing it efficiently as possible.
If time is scheduled to utilized the OR, ensure that it is actually being used in order to reduce financial waste and increase profitability. Moreover, healthcare organizations can "rent" time to other physicians that may not have OR capabilities in order to maximize efficiency.
Cost reduction is everyone's job therefore all healthcare personnel needs to be involved in reducing costs and improving quality for the financial health of the organization. Healthcare organizations can promote the utilization of products from vendors that have provided discounts and are cost effective yet do not compromise on quality.
Moreover, practicing routinely based care can drastically reduce the expenses associated with redundant tests or treatments. Healthcare organizations can partner up on certain services such as food and laundry services in order to further reduce costs.
Partnering up is not just limited to services of food and laundry, but also partnering up with physicians outside the organization for health treatment services as well as providing incentives to attract new physicians to the organization (Dunn, 2013).