How to control your I.V. costs.
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If hospitals are to succeed in their efforts in cost control, they must segregate the influence of efficiency and effectiveness and integrate the medical staff into the management structure. One management model that facilitates such integration is Clinical Matrix Management. Using such a model, the distinct responsibilities in patient care can be segregated between the administration and the medical staff and appropriate accountability and responsibility allocated. Without the explicit integration of the medical staff into the organizational structure, the attempt to control patient care costs is unlikely to succeed.
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Low productivity and high turnover can be more costly to employers than insurance premiums and medical claims. This article discusses the need for coordinated management of all behavioral health benefits. It provides two case studies that illustrate how such coordination can avert possible long-term costs and loss of a valued employee.
Health care executives are increasingly frustrated by Information Technology (IT). Although our industry is often accused of underinvesting in technology (hospitals average 2-3 percent of their costs in IT, compared to other industry's 8-10 percent), when IT investments are made, they fail to reflect demonstrable return to the bottom line. Yet the effective deployment of technology is so critical to the success of the organization and can in itself cause the failure of a health care system.
Health care executives are increasingly frustrated by Information Technology (IT). Although our industry is often accused of underinvesting in technology (hospitals average 2-3 percent of their costs in IT, compared to other industry's 8-10 percent), when IT investments are made, they fail to reflect demonstrable return to the bottom line. Yet the effective deployment of technology is so critical to the success of the organization and can in itself cause the failure of a health care system.
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Faced with a downward turn in its total joint replacement product line, Avera McKennan Hospital was able to avert further decline and save dollar 500,000 annually by: Reviewing and analyzing the product line's past performance. Developing a business model to govern its new implant supply process. Obtaining physician buy-in. Ensuring vendor compliance with its new contracts. Developing a role as business partner with its orthopedic surgeons.
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Implementing this model is not easy or inexpensive. By design it is a cooperative effort that relies on multidisciplinary cooperation and intervention. It recognizes the true nature of industry's problem with musculoskeletal injuries: a complex, multifaceted problem that requires more than band-aids or quick fixes. Appropriate management of musculoskeletal injuries addressing all components of the model is a task that must be undertaken if industry is to control its medical costs. Controlled studies must be undertaken to determine the model's effectiveness in the long-term management of industrial musculoskeletal injuries.
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