Article Explores Common Cost-Cutting Mistakes That Can Lead to Lower Quality Care
November 12, 2014 | Risk Management News
Attempts by healthcare providers to reduce costs by cutting back in areas such as personnel, space, equipment, and supplies often lead to higher costs and sometimes lower-quality care, according to findings presented in an article published in the November 2014 Harvard Business Review. The article asserts that, although reducing spending in these areas appears to generate immediate results, the cost reductions achieved are usually made without considering the best mix of resources needed to deliver excellent patient outcomes in an efficient manner. Furthermore, clinical personnel are often left out of decisions about how to achieve savings, which means that providers lose out on significant opportunities for benchmarking and standardizing medical practices in ways that could both lower costs and improve care.