How hospitals are saving money amid the pandemic: 5 things to know

Supply reprocessing was the most typical cost containment technique utilized by U.S. medical facilities and health systems in response to the COVID-19 pandemic, according to a new Kaufman Hall report..

Alia Paavola –
Tuesday, October 20th, 2020

Kaufman Halls 2020 State of Healthcare Performance Improvement report evaluated results from a poll of 64 U.S. health care executives to much better comprehend the impacts of the pandemic. 5 things to understand:.

1. The 3 most common cost-cutting procedures were supply reprocessing, furloughs and wage decreases. Sixty-three percent of participants said their company executed a supply-reprocessing strategy; 59 percent stated furloughs were used, and 56 percent stated wage reductions or freezes were utilized..

2. Thirty one percent of respondents said that their organizations permanently cut staff, and 20 percent stated they are considering a merger or acquisition to offset revenue losses..

3. Twenty-two percent of respondents saw their costs increase more than 50 percent throughout the pandemic. The best percentage increase in costs was personal protective devices and the second was expenditures related to nurse staffing..

4. One-third of participants reported that their companies saw their operating margin decrease more than 100 percent from the second quarter of 2019 to the second quarter of 2020.

5. Oncology was the only service location where over half of survey participants reported their client volumes rebounded to more than 90 percent of pre-pandemic levels..
Access the full report here.

The 3 most common cost-cutting measures were supply reprocessing, furloughs and salary reductions. Twenty-two percent of participants saw their expenses increase more than 50 percent during the pandemic. © Copyright ASC COMMUNICATIONS 2020. Intrigued in LINKING to or REPRINTING this material?

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