Five Quick Cost Reduction Areas
FiveQuickCostReductionAreas

Overlooked Costs That Should be Reduced

Our firm has been responsible for hundreds of strategies, solutions and ideas for expense reduction.

Let’s take a look at five which can be actioned right away, or at least reviewed or looked into.

The first is unclaimed funds. You can go on your state’s website and look up your organization to see if you have unclaimed funds that are due to your hospital. Check your hospital name and check other affiliations. This may be a near instant way to bring revenue right back to your hospital.

The second, take a look at merchant cards. Your hospital and your affiliates accept credit cards. A great way to recapture some money is to reduce the cost of those fees. Merchant card reviews should be done on a periodic basis, and it’s a great way to drive revenue.

The third, and it often gets overlooked…bank fees.

These fees should be looked at monthly and negotiated on a monthly or quarterly basis. Click To Tweet

We’ve had clients that have saved hundreds of thousands of dollars just by re-negotiating their bank fees.

Your real estate leases is the next item on the list. Again, this is an area that’s often overlooked. There are significant costs in CAM charges, the ones that get assessed on an annual basis for electricity, snow removal, lawn maintenance, and other fees that sit outside of the actual rent cost. It’s imperative to keep a pulse on this.

Again, our clients have saved hundreds of thousands of dollars just by taking an annual look at their real estate leases.

And finally, workers compensation costs. This is an area that needs to be audited on an annual basis. There are financial miscalculations, wrong classification codes, and wrong experience modification codes. You can drive additional savings and additional revenue by taking a deeper look into this area.

Get a handle on your expenses before they get out of hand!

What’s one other quick, but overlooked area to review potential savings?

The audio version of this entry is at the bottom of this post.

Lisa Miller
Lisa Miller
Lisa Miller is a consultant, speaker, and podcast host. Her consulting firm, VIE Healthcare, has provided services to over 1,000 hospitals and organizations since 1999.
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Discover 15 Effective Cost Savings Strategies That Most Hospitals Can Apply Right Now
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A strategy developed from analyzing over 5,000 hospitals

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A simple step-by-step plan in plain language

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Proven processes to organize and motivate your team to find savings

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VIE Healthcare 15 Effective Cost Savings Strategies Report Cover Image
Download FREE Report
Discover 15 Effective Cost Savings Strategies That Most Hospitals Can Apply Right Now
Learn how to maximize your hospital's profitability while enhancing patient care.
Check Box

A strategy developed from analyzing over 5,000 hospitals

Check Box

A simple step-by-step plan in plain language

Check Box

Proven processes to organize and motivate your team to find savings