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Tip of the week, part one: Increase efficiency and cut costs

Managed Care Weekly Advisor, August 29, 2007

Tip of the week, part one: Increase efficiency and cut costs

Don't make the mistake of settling for the status quo and neglecting efforts to look for ways to cut costs and improve efficiency. Consider these tips that could involve small corrections or adjustments in the way you do business and have a significant impact on your bottom line.

  1. Review your vendor contracts: Make sure you're getting the best price for items and services. For example, something as basic as your waste management pickup contract could reveal significant room for improvement.

  2. Cut back on service bills, such as the linen bill: Consider eliminating scrubs for the staff and instead have your staff members wear their own home-laundered scrubs to save on the linen bill.

  3. Consider what is processed in-house: Ask yourself whether you are saving time or money by processing certain items yourself. For example, are you ordering or laundering, folding, and wrapping sterile towels? Take the time to evaluate which option is better for your center.

  4. Shop around at least quarterly for the most expensive and/or most frequently used supplies: Whether it's shopping around or assessing your inventory, don't fall into a routine by simply restocking the shelves. Make your group purchasing organization and distributor demonstrate the expected added value they offer your center. Determine whether local vendors and contracts can offer better savings. Ask for realistic price reductions, bigger order discounts, and early payment incentives.