Running head: REGIONAL HOSPITAL 1

Regional Hospital

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REGIONAL HOSPITAL 2

Regional Hospital

The paper focuses on strategies that can be implemented so as to cut down on cost in the

hospital which will be discussed in the first part of the paper. On the later part recommendations

that a disease management company can offer as to improve patient health outcome will be

outlined as well as the resources needed.

Regional hospital is a community hospital which serves a large number of people,

effective measures need to be put in place so as to improve health care services offered to patient

(Jin, 2001).

The strategies and recommendation discussed in this paper aims at improving the quality

of health care services provided at the lowest cost possible.

Different strategies can be applied so as to have effective change in a community hospital

like in regional hospital. Such strategies are: traditional cost management

Under this pathway it focuses on reducing the current operation cost

2. Improving service line as well as restructuring businesses among other key elements

3. Reducing cost through clinical transformation (Larson, 2010).

The most used approach or strategy is number 1, though for it to bear long term success

number 2 and 3 should be coordinated together.

Traditional cost management is termed better among the three strategy as it gives a

framework for planning and execution of the plan.labour cost as well as overhead cost are taken

into account so as to reduce the overall cost incurred

CEO should be in charge of the strategic cost transformation process as the process

requires sustained effort and attention at the highest level (Larson, 2010).
Lay down the master plan: the plan articulate the order of sequencing of pursuit and

achievement on cost reduction. The master plan to be used will have to be implemented
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based on clinical resources as well as the environment and most importantly the current

financial position.in addition the political will within Regional Hospital, culture of

measurement and accountability, clinical team, lastly the strength of its management

(Larson, 2010).
Internal control system for monitoring and managing progress in delivering health care

value must be put in place. A corporate finance based business systems with tools for

business planning, financial planning, capital allocation as well as management (Takeda,

2007). All of these should be coupled with cost control, budgeting and capital structure.

Regional Hospital would need to hire professional and expert in I.T to support the

management team in monitoring the expected end result. Clinical and business data must

be integrated as analytical capabilities and use of quantitative techniques are required.

Create and support cultural change. This is the most fundamental and pervasive level as

strategic cost transformation requires cultural change. With support from board of

directors and executive leaders. Communication to all stakeholders is a critical to sustain

key changes in an organization (Takeda, 2007).

Recommendation discussed in this paper relayed in effect to the services already offered

in the hospital. Such include how patients move around the hospital whether it a simple

test been done or a complex one. This is because there is big savings generated by

moving patients quickly and efficiently. That is from the point of registering a new

patient, get a CT scan or have a complex surgery. Eliminating delays, reducing idle time

for machines, altering physical layouts to eliminate unnecessary walking, revising job

descriptions and/or assignments - these are some of the relatively simple steps hospitals

can take on their own to save money and introduce efficiency into their operations

(Takeda, 2007). Of course, doctors, nurses and other caregivers -- not just administrators

- need to be consulted to ensure a supportive staff.

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References

Jin, J. Y. (2001). Strategic Cost Reduction and Cost Revelation. German Economic Review,

2(2), 99-111.
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Larson, C. (2010). Targeted testing for cost reduction. Transactions of the Institute of Metal

Finishing, 88(3), 120-121.

(2004). Successful cost reduction methodologies: World leading manufactures highlight tools

and techniques for achieving major cost reduction. Strategic Direction, 20(4), 31-33.

Takeda, K., Ozeki, N., & Konagaya, O. (2007). Development of Measurement Technique of

External Cost for Evaluating Cost Reduction. Journal of Construction Management,

JSCE, 14, 167-178.