Solutions To transform costs accurate cost related data insights decision

Solutions to transform costs accurate cost related

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Solutions To transform costs, accurate cost-related data, insights, decision making, and surveillance techniques are vital. Moreover, this challenge could account for the low-cost reduction goals set by healthcare organizations and limited progress toward achieving such goals. To succeed in reducing organizational cost structure, executives need a rich set of accurate data that gives them insight into their current costs and allows them to make informed decisions. The data and analytics must extend beyond financials to include clinical and other operational data sets. Many executives struggle with leveraging data and analytics to guide their focus on cost efforts. Having a reliable cost accounting solution, with flexibility and transparency into the costing model, is critical for gathering the proper data needed to drive timely business decisions. A report by Mathew et al. (2015) indicates that 91% of Chief Financial Officers (CFOs) say their organization should make better use of financial and operational information to advise on decision making. Generally, health care providers should adopt a new mindset and ensure accountability. A new mindset is required for the kind of extreme shift and lowering of costs that will propagate an organization into the future. That frame of mind is characterized by: Leadership commitment and ability to think differently about the purpose and design of the organization while holding to nonnegotiable values related to quality, access, and patient experience.
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INFORMATION TECHNOLOGY 22 No tolerance for incrementalism and political sensitivities, but rather, a laser-focus on building organizational agility through cost transformation. Willingness to focus on the full cost transformation agenda and incorporate lessons learned in other organizations and industries while drawing upon experience in leading similar cost improvement initiatives. A cost-transformation steering committee structure and processes empowered by system executives with authority to make tough and motivational decisions for the divestment, transformation, or closure of facilities and programs which do not or cannot otherwise adhere to necessary financial or clinical standards. Executives and physicians throughout the organization should be held accountable to transparent measures of performance Tenacious organization-wide improvement teams that do not give up easily and are motivated by team relationships and the desire to achieve a greater good for the organization. Put in place a Cost Improvement Roadmap, Based on Data- and Analytics-Based Planning, Processes, and Tools. Systematic planning and best-in-class processes and tools will be crucial to success. Best practices Tackle the total cost of care- A A long-term cost improvement plan provides the framework for how to move from immediately accretive operational improvements to clinical cost transformation.
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  • Fall '16
  • Health care provider

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