Enhancing Efficiency in Healthcare: A Guide to Cost-effective Workflow Optimization for Organizations
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In the face of projected financial challenges for healthcare organizations in Q1 2023, including high inflation, labor shortages, and ongoing COVID-19 and other viruses, it's crucial for healthcare providers to adopt cost-saving strategies. This article, part of HealthTech's MonITor blog series, explores four key approaches: automation, cybersecurity, managed services, and contract and supplier consolidation.
Automation
By implementing automation, healthcare organizations can streamline administrative tasks, reduce manual errors, and improve operational efficiency. Technologies such as robotic process automation (RPA) and AI-driven tools can help minimize labor costs and accelerate workflows in billing, claims processing, appointment scheduling, and patient data management.
Cybersecurity
Strengthening cybersecurity defenses is essential in reducing the risk and related costs of data breaches, ransomware attacks, and compliance penalties. Investments in automated threat detection, multi-factor authentication, staff training, and managed security services can protect patient trust and reduce potential financial losses.
Managed Services
Outsourcing IT, billing, or other non-core services to managed service providers (MSPs) can provide economies of scale, access to specialized expertise, and predictable budgeting. MSPs can manage infrastructure upgrades, compliance, and continuous monitoring more cost-effectively than in-house teams.
Contract and Supplier Consolidation
Consolidating vendor contracts and suppliers allows healthcare organizations to negotiate bulk discounts, standardize supplies and services, reduce duplication, and improve supply chain efficiency. This reduces overhead and secures better pricing terms, especially important amid rising healthcare labor and supply costs driven by inflation and workforce shortages.
The need for these strategies is underscored by projected healthcare cost increases of around 9-10% in 2026, driven by factors like labor shortages, specialty drugs, and provider market power through consolidation.
Streamlining Workflows
Organizations can focus on process changes to streamline workflows and cut costs. Healthcare providers should take inventory of all the groups or services they rely on and consolidate redundancies to have a central hub for services and a central way to manage expectations. Having too many vendors and protocols can lead to increased expense and be counterproductive. Consolidating services through a single partner can lead to lower overall costs and increased quality.
Improving Clinical Processes
Automation can also improve clinical processes, such as hospital workflows and patient monitoring. For instance, Monument Health in South Dakota used Artisight, a solution that combines video and artificial intelligence, to automate hospital workflows.
Cost-Effective Solutions
Partnering with a company that specializes in healthcare cybersecurity can be a cost-effective solution for improving cybersecurity strategies. Some health systems are considering real estate changes to find cost savings or drive more value.
Establishing Strong Contracts
Establishing strong relationship-based contracts, whether through a group purchasing organization or locally negotiated, can be a key to reducing costs for supplies and drugs. Hospitals are reporting negative operating margins for the end of the year, making these cost-saving initiatives more important than ever.
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References:
[1] HealthLeaders Media. (2022, September 29). Healthcare costs to rise 9-10% in 2026, driven by labor shortages, specialty drugs, and provider market power. Retrieved from https://www.healthleadersmedia.com/finance/healthcare-costs-rise-9-10-2026-driven-labor-shortages-specialty-drugs-and-provider-market-power
[2] Becker's Hospital Review. (2022, October 18). 9 financial challenges hospitals and health systems will face in 2023. Retrieved from https://www.beckershospitalreview.com/finance/9-financial-challenges-hospitals-and-health-systems-will-face-in-2023.html
[3] Health Payer Intelligence. (2022, September 28). Healthcare costs projected to rise 9-10% in 2026, driven by labor shortages, specialty drugs, and provider consolidation. Retrieved from https://www.healthpayerintelligence.com/news/healthcare-costs-projected-to-rise-9-10-in-2026-driven-by-labor-shortages-specialty-drugs-and-provider-consolidation
[5] Healthcare IT News. (2022, September 29). 5 cost-saving strategies for healthcare organizations in 2023. Retrieved from https://www.healthcareitnews.com/news/5-cost-saving-strategies-healthcare-organizations-2023
- The integration of technology, such as automation and AI-driven tools, into medical workflows not only streamlines administrative tasks but also MRI scans can be analyzed using AI to aid in the detection and management of chronic diseases like cancer, thus bridging the gap between science and medical-conditions.
- As health systems face cybersecurity threats and financial challenges, investments in solutions that protect sensitive patient data, like automated threat detection and managed security services, not only secure patient trust but also safeguard the technology-reliant healthcare sector from cybersecurity-related surgical equipment failures and ransomware attacks, ensuring the safety and efficiency of chronic disease management and treatment.
