As hospitals and health systems face constant revenue stream pressures, financial managers are leveraging cost containment strategies that lean on population health, supply chain management and salary adjustments as a way trim costs.
When it comes to population health, the concept is simple: Keep people healthy, prevent them from over-utilizing the system, and they won’t come back for unnecessary follow-up care.
But there’s a catch. Hospitals have to first spend money to get the system in place.
Investing in population health management, however, is far from the only means a hospital system has to exercise control over its cash flow. Savings can also be found in the supply chain, where purchasing can be made cheaper by latching onto a group purchasing organization and essentially buying in bulk.
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