8 Hospital Budgeting Tips
1. Make Patients’ Experience Your Priority
While budgeting for your hospital, you don’t just look at one department, there are several departments and facilities in a hospital and each of it needs to be paid attention. But, the facilities that affect your patients’ experience should be on the top of your priority list.
2. Classify the Overhead Costs
It is extremely important to classify the overhead costs of clinical and non-clinical expenses in order to compare the costs. To classify, you can divide the expenses into product categories, classes and subclasses. These overhead costs should be kept under regular check otherwise the measures decided to reduce hospital’s cost won’t be implemented effectively. You can spend less on IT tools by using free online versions like MRI viewer online.
3. Keep a Track on Equipment Warranty
There is numerous equipment in a healthcare facility and many of them require repair and maintenance at a certain point in their life. Since this essential equipment can’t be left unrepaired so make sure that you keep a record of their warranty so that their maintenance cost doesn’t fall under the hospital’s budget and cut from their warranty.
4. Reduce Lighting
A great way to budget your hospital’s expenditure is to limit the lighting within the hospital or medical center. This can be done by removing the redundant lights, adding the switchboards in the rooms so that when the work there is complete, whoever leaves the room last can turn off the electricity of that room. Moreover, you can also save on electricity bills by adding energy efficient lights that lower the total bill by at least 15-16%.
5. Give Explanations
Whatever you think about the hospital budget, in the end, it depends on the approval of the finance department. So, when you would be presenting details to them, makes sure you give a detailed explanation about every expenditure to them also so that they can make a decision accordingly. Giving thorough explanations could increase the chances of getting your budgetary plan approved.
6. Don’t Overlook the Shipping Costs
Hospitals keep on getting deliveries of several different things required in the hospital almost on a regular basis. The price of shipping cost is usually overlooked by many hospitals which ultimately adds to their budget. In order to diminish these shipping costs, the hospital’s incoming and outgoing deliveries shall be regulated and recorded. Furthermore, the costs of these services and the vendors should also be negotiated to reduce the budget.
7. Reduce Readmissions
Readmissions are a great reason for adding a high amount to the hospital’s budget because of privately insured patients. The rate of readmission needs to be reduced by ensuring that the patient after getting discharged is given the appointment for their next checkup and one or two nurses are sent along with the patient for in-house care. This makes the patient believe that they are following the post-discharge instructions rightly.
8. Wellness Program for Employees
It is important to have healthy and well-aware employees for a better hospital environment. For this, you should motivate your employees to stay well and organize disease management initiatives for them that provide lower and reasonable health insurances to them. This could save a good amount of money from the hospital’s budget because if any of the employees requires treatment, he/she would be covered with the insurance.