Strategies for reconfiguring cost structure: Article critique
This article is about the dynamics of today’s healthcare marketplace are giving rise to a fundamental reconfiguration of cost structure, as changes to care delivery redefine now, where, and from who consumers access healthcare services. The author provides detail about organizations seeking to respond to today’s broad demand for greater value in health care face two imperatives.( Healthcare financial management ,2015) HFMA research value project found four predominant areas in which organizations can identify cost reduction opportunities. The primary focus of the article on key points: labor, supply chain, clinical transformation, and service line and assert rationalization.(Healthcare …show more content…
Labor being a high percentage of total cost of the health care system, effort to change the cost structure could make better opportunities for staff productivity. Results from the survey shows that more people will decrease the staff members and services, while only few will not decrease the cost of the services. Survey shows that the healthcare system does not care about the care of the patients, but want to continue receive the same amount of money from the patients. It is very important that out sourcing can have a great significance to a company. Productivity can become a negative impact on staff morals. (Healthcare financial management, 2015) Often times an organization’s own staff can find ways to reconfigure for the workforce, oppose to different opinions from outside of the company. The article states that …show more content…
The trend is starting to create excess hospital bed capacity in some places. Restructuring major cost for healthcare systems requires service line and asset rationalization. Opportunities for service line and asset rationalization can be very limited. Organizations that have considered to downsize have several factors for consideration .The article list a few of the considerations that take place, community needs, willingness to travel, competitive landscape, and organizational impediments. The results of the survey suggested that the need to configure cost structure to invest in the transition value.(Health Finance management,2015) Building network infrastructure and capabilities take risk on to the patients. The article list networking options to identify investment needs in various areas. During the survey one interviewee equated such investments to “laying the cable” needed to take advantage of future opportunities.(Health management finance,2015) The last point the article talked about was the beyond cost containment. The article addresses the cost containment alone cannot bring success to the
This article is about the dynamics of today’s healthcare marketplace are giving rise to a fundamental reconfiguration of cost structure, as changes to care delivery redefine now, where, and from who consumers access healthcare services. The author provides detail about organizations seeking to respond to today’s broad demand for greater value in health care face two imperatives.( Healthcare financial management ,2015) HFMA research value project found four predominant areas in which organizations can identify cost reduction opportunities. The primary focus of the article on key points: labor, supply chain, clinical transformation, and service line and assert rationalization.(Healthcare …show more content…
Labor being a high percentage of total cost of the health care system, effort to change the cost structure could make better opportunities for staff productivity. Results from the survey shows that more people will decrease the staff members and services, while only few will not decrease the cost of the services. Survey shows that the healthcare system does not care about the care of the patients, but want to continue receive the same amount of money from the patients. It is very important that out sourcing can have a great significance to a company. Productivity can become a negative impact on staff morals. (Healthcare financial management, 2015) Often times an organization’s own staff can find ways to reconfigure for the workforce, oppose to different opinions from outside of the company. The article states that …show more content…
The trend is starting to create excess hospital bed capacity in some places. Restructuring major cost for healthcare systems requires service line and asset rationalization. Opportunities for service line and asset rationalization can be very limited. Organizations that have considered to downsize have several factors for consideration .The article list a few of the considerations that take place, community needs, willingness to travel, competitive landscape, and organizational impediments. The results of the survey suggested that the need to configure cost structure to invest in the transition value.(Health Finance management,2015) Building network infrastructure and capabilities take risk on to the patients. The article list networking options to identify investment needs in various areas. During the survey one interviewee equated such investments to “laying the cable” needed to take advantage of future opportunities.(Health management finance,2015) The last point the article talked about was the beyond cost containment. The article addresses the cost containment alone cannot bring success to the