Cost Savings for Hospitals 1
Name: Kelly Patricia Rehbain
Cambridge College - Master of Management
MMG 517 – Research Methods for Manager
Instructor: Cynthia Ker
COST SAVINGS FOR HOSPITALS
Overview Currently, most of the hospitals in the United States are facing crisis in their operations because of the high costs used in the maintenance of the hospitals. Therefore, it is without doubt that, there is need to change how the funds of the hospitals are maintained by encouraging the participation of the hospitals’ administrators as well as the employees to lead to reduced costs. The measures to reduce costs in the hospitals should be focused on programs that facilitate for proper care, rational utilization of hospital supplies, implementation of protocols and according value to professionals. Furthermore, participative leadership and motivation to provide quality services by the employees is fundamental. Essentially, hospitals should have a well-designed roadmap for effective utilization of resources to contribute to reduced level of tossed wastes, hospital closures and poor service delivery.
Background
Hammaker and Tomlinson (2010) note that every institution or organization such as a hospital requires funds in order to effective provide services to its clients. In the process of providing these services, the institutions or organizations incur both direct and indirect costs. In
hospitals, direct costs include: purchase of equipment, water, phone, electricity and supplies among others. Indirect costs include: ratio of cost of sales, percentage of costs of maintenance used in laboratories or outpatient clinics and others. Evidently, the costs can be calculated based on the actual values of all the procedures and hospitalization. For that reason, it is apparent that the hospitals are sophisticated institutions that spend high amount money but it is possible to reduce costs in the institutions through encouragement of employee commitment, reduction of wastes and effective management of
Cambridge College - Master of Management
MMG 517 – Research Methods for Manager
Instructor: Cynthia Ker
COST SAVINGS FOR HOSPITALS
Overview Currently, most of the hospitals in the United States are facing crisis in their operations because of the high costs used in the maintenance of the hospitals. Therefore, it is without doubt that, there is need to change how the funds of the hospitals are maintained by encouraging the participation of the hospitals’ administrators as well as the employees to lead to reduced costs. The measures to reduce costs in the hospitals should be focused on programs that facilitate for proper care, rational utilization of hospital supplies, implementation of protocols and according value to professionals. Furthermore, participative leadership and motivation to provide quality services by the employees is fundamental. Essentially, hospitals should have a well-designed roadmap for effective utilization of resources to contribute to reduced level of tossed wastes, hospital closures and poor service delivery.
Background
Hammaker and Tomlinson (2010) note that every institution or organization such as a hospital requires funds in order to effective provide services to its clients. In the process of providing these services, the institutions or organizations incur both direct and indirect costs. In
hospitals, direct costs include: purchase of equipment, water, phone, electricity and supplies among others. Indirect costs include: ratio of cost of sales, percentage of costs of maintenance used in laboratories or outpatient clinics and others. Evidently, the costs can be calculated based on the actual values of all the procedures and hospitalization. For that reason, it is apparent that the hospitals are sophisticated institutions that spend high amount money but it is possible to reduce costs in the institutions through encouragement of employee commitment, reduction of wastes and effective management of