Cost Reduction Strategies in Healthcare Organizations

Healthcare
Your Name
Subject and Section
Professor’s name
Date
Cost Reduction Strategies in Healthcare Organizations
Increased healthcare costs pose a burden to all the stakeholders in the healthcare organization, including the administrators, healthcare workers, and most significantly, the patients. Therefore, cost reduction strategies have been implemented in many hospitals to ensure that the financial burden will not affect healthcare management.
Some of the most prevalent cost-reduction strategies are the following: First, preventing medication errors by properly updating the system and comprehensive evaluation of the patient, especially the multimorbid elderly, significantly reduces the healthcare costs (Dalton & Byrne, 2017). Second, the utilization of electronic health records (EHRs) is cost-effective, and it significantly reduces the spillover costs between hospitals despite the increase in costs when the individual hospital will be analyzed (Atasoy et al., 2018; Aldosari, 2017). Third, changing from the obsolete traditional consumer data to a novel predictive model for patient billing and collections increases the chance that the patients will pay their dues. Hence, this increases the hospital revenue (Appold, 2019). Fourth, reducing the salaries of the health providers and the allied health field (Stadhouders et al., 2019).
Reasons for Ineffective Cost-Containment Efforts
There are several reasons for the ineffective cost-containment efforts of healthcare organizations. The most significa...