Healthcare Cost Containment, December 2011 Issue

Taking proactive steps to manage the staggering drug shortage may help to avert or reduce some of the costs associated with hunting down hard-to-find drugs—and, more important, protect patient safety.

Too often, the task of calling discharged patients to ensure appropriate follow-up care falls on an already overburdened hospital nurse. Outsourcing the task may lead to improved care, happier patients, and lower readmission rates.

In the process of uncovering the root causes of price discrepancies, Ohio State University Medical Center was able to eliminate finance charges for late payment of invoices as well as make process changes that have led to more efficient ordering, improved data management, product standardization, and supplier contract negotiations.

Enrolling in the 340B drug discount program can help hospitals do more than lower drug costs. The program can also help hospitals balance finances, protect against price increases, reduce their own healthcare costs, and increase patient access to pharmacies.

Known as "The Storm" by local residents, Hurricane Katrina’s impact on New Orleans was unprecedented in American history. The local healthcare system was as devastated by the storm as the community. But one hospital that remained open did more than survive: Ochsner Health System built a new healthcare model for New Orleans that garnered its CEO top accolades by Modern Physician magazine in 2007, naming him the No. 1 most powerful physician executive in the nation.

Healthcare consultant Kelly E. Styles, RN, MHA, PhD, president of Chicago-based Verras, discusses how poor habits and entrenched practice patterns among administrators and physicians can get in the way of reducing labor expenses.

A recent study found that hospitals that encourage the use of oral medications over intravenous (IV) medicines, where possible, could save millions of dollars a year.

When Stanford Hospital & Clinics launched a program to facilitate disclosure of adverse events, apologize them, and compensate patients, the health system saw its liability premiums decrease by about $3.2 million annually.

As the nation moves toward value-based business models of care, a period of ‘disruptive innovation’ will reduce costs of care delivery and make access to care more convenient.

Although payment reform and expense management dominate discussions among healthcare providers, clinical integration will soon emerge as the long-term strategic imperative for community hospitals and health systems.