Essay on The Cost Of Industry Has A Significant Impact On Healthcare

1569 Words Mar 26th, 2016 7 Pages
The cost of industry has a significant impact on healthcare, so much so that while health institutions attempt to save money with cutbacks they realize little reward and few gains in return. With technological advances, reduced staff numbers, and further push for greater efficiency in the healthcare industry, healthcare institutions should realize a significant amount in savings, which at that point should be passed on to patients. Unfortunately, savings are not being passed on to patients in the current market. With all of the rising health costs and increasing demands, health organizations are being forced to absorb additional costs associated with patient care. The challenge becomes how health systems can counter the increasing costs so that their efforts in cutbacks are truly beneficial. A majority of the savings that come from cutbacks are being used to make up for those losses so that the institution can stay in decent financial standing.
An approach that has become more and more popular in trimming costs and providing savings in health care is introducing lean management, which includes driving out waste so that every action by employees provides value to patients. The lean practices range from simply eliminating waste in day-to-day operations to eliminating waiting rooms as a whole. Lean practices in health care are still fresh in concept, so numerous organizations are hiring outside efficiency companies to implement changes that the organization can then adapt and…

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