Cost of Healthcare Workforce
What is the cost associated in a healthcare setting when the costs we are referring to are not the ones that are being billed to a patient. Also, are there ways to cut cost so there is more revenue being generated and coming in rather then it going out? I would like to discuss a few of the drivers that I believe are the most prevalent when looking at the overall cost of running a hospital, there are always more but these are my personal top three.
The first driver is cost associated with staff members, known as the overall labor costs. This is an important piece of the financial puzzle as multiple staff members require a certain salary and also how many staff members do we need per patient count. This has been an issue within healthcare but can be easily tweaked based on the type of patient we are helping. Long term requires more staff and different trained staff while rehabilitation requires less as it is short term and typically non-life threatening. It is a very expensive part of the budget for labor and one that needs to constantly be looked at and controlled.
The next cost driver is supplies that the hospital will need in order to properly function. These supplies are not always blankets and sheets, but the bigger necessary costs like specialized hospital beds, medication pumps, medications, ventilators, defibulators, and really any type of life saving equipment that has a price tag (2021). Also non-life saving equipment which would now include those sheets, blankets, food items for patients as well as food for the workers. These supplies need to be looked over and kept via inventory log as we can maintain most of these items for many years without having to order more constantly. These costs associated with supplies can sneak up quickly if not paying attention. This is a very maintainable cost.
The last cost driver, which is big and probably foreseen on many occasions is technology (May, 2021). I am not referring to the IT department per say but the cost of the technology for all the equipment that is used, the cost of internet and wireless capabilities, the cost of apps for patients to review the medical information. There are also servicing the equipment for inspections which can be an annual or bi-annual event. Technology is one thing that helps the overall flow of a hospital and without it, the labor and supply cost would most likely suffer as it would take longer and require more to get simple tasks done. This specific driver I feel is a bit out of administrator’s hands as they need it and really would be inefficient working without it. I do not feel this can be changed in the financial way too much without creating an issue that would cost more money, this is a fixed driver.
After looking at the drivers, two out of the three can be looked at and adjusted to help save more money for overall cost. They are all very important to the overall operation of the hospital and needs to be talked about often to make sure nothing slips through the cracks (2021, April).
What is the cost associated in a healthcare setting when the costs we are referring to are not the ones that are being billed to a patient. Also, are there ways to cut cost so there is more revenue being generated and coming in rather then it going out? I would like to discuss a few of the drivers that I believe are the most prevalent when looking at the overall cost of running a hospital, there are always more but these are my personal top three.
The first driver is cost associated with staff members, known as the overall labor costs. This is an important piece of the financial puzzle as multiple staff members require a certain salary and also how many staff members do we need per patient count. This has been an issue within healthcare but can be easily tweaked based on the type of patient we are helping. Long term requires more staff and different trained staff while rehabilitation requires less as it is short term and typically non-life threatening. It is a very expensive part of the budget for labor and one that needs to constantly be looked at and controlled.
The next cost driver is supplies that the hospital will need in order to properly function. These supplies are not always blankets and sheets, but the bigger necessary costs like specialized hospital beds, medication pumps, medications, ventilators, defibulators, and really any type of life saving equipment that has a price tag (2021). Also non-life saving equipment which would now include those sheets, blankets, food items for patients as well as food for the workers. These supplies need to be looked over and kept via inventory log as we can maintain most of these items for many years without having to order more constantly. These costs associated with supplies can sneak up quickly if not paying attention. This is a very maintainable cost.
The last cost driver, which is big and probably foreseen on many occasions is technology (May, 2021). I am not referring to the IT department per say but the cost of the technology for all the equipment that is used, the cost of internet and wireless capabilities, the cost of apps for patients to review the medical information. There are also servicing the equipment for inspections which can be an annual or bi-annual event. Technology is one thing that helps the overall flow of a hospital and without it, the labor and supply cost would most likely suffer as it would take longer and require more to get simple tasks done. This specific driver I feel is a bit out of administrator’s hands as they need it and really would be inefficient working without it. I do not feel this can be changed in the financial way too much without creating an issue that would cost more money, this is a fixed driver.
After looking at the drivers, two out of the three can be looked at and adjusted to help save more money for overall cost. They are all very important to the overall operation of the hospital and needs to be talked about often to make sure nothing slips through the cracks (2021, April).