Economists speculate wages, gasoline and many other input costs will likely remain high for at least one more year, possibly two. Focusing on productivity and non-wage operating cost optimization will help companies conserve cash and improve margin. Given pressure on future price increases, supplier cost optimization will become even more important to maintain healthy margins.
WHS Industry Partner Expense Reduction Analysts recommends four steps all hospitals and health systems should take now to maximize cost optimization. Hospitals should understand their true spend, become educated about supplier industries quickly in order to level the playing field, establish a pricing mechanism and ensure they can make savings.