Do you know that it’s common for a medical facility to struggle with managing its overhead costs? Well, this happens as much as they struggle to save the patients’ life.
Just for your reference, overhead expenditures take up a large part of medical operating costs. And the acutely increasing number of patients causes hospitals to find ways of reducing expenses.
Truthfully, handling such a problem can be counterproductive given the intricacies involved. But it doesn’t have to be the case. Following a simple, strict regimen, you can substantially cut your medical facility’s overhead costs.
How to Reduce Medical Facility Overhead Costs
Medical facilities run like other businesses. They have operating expenses for the day-to-day running of the facility. Among these expenses include rent, property maintenance, and energy. Such expenses are unavoidable. But over the years, several medical facilities have successfully alleviated their overhead costs. So, it is an achievable feat.
Below are seven ways which medical facilities can reduce overhead costs:
Execute Digital Water Management
Water is essential in medical facilities, and thankfully the plumbing industry has seen a wave of technological advancements thanks to IT. Today, the plumbing market has innovative fixtures and installations. And most of these devices are smart and programmable. For instance, smart water meters can monitor water consumption and aid in plumbing maintenance.
Smart water meters have a host of benefits. For instance;
- They prevent water meter-reading faults.
- They save money by fostering water conservation at medical facilities by monitoring water usage.
- They provide more precise readings compared to the standard water meters.
- They detect leaks and assist in identifying their location.
Use Energy Saving Solutions
Medical facilities should adopt efficient forms of energy, especially in lighting, which consumes a lot of energy. We have simple and effective ways to conserve power. Interestingly, you can reduce energy consumption by replacing your light bulbs or older fluorescent fixtures with LED bulbs, LED retrofit kits, or new LED fixtures. Likewise, you can install lighting control systems that do everything from turning lights off when spaces are unoccupied to automatically dimming on sunny days to providing manual control in specific rooms. On top of that, more sophisticated lighting control systems also help you track hospital-owned assets throughout the facility.
Record Overhead Costs Accurately and Consistently
Overhead costs need to be accurate and categorized. This helps in coming up with strategic intervention measures to reduce costs. To make sense of your medical facility’s progress, ensure you accumulate all overhead costs to the final cost.
Avoid Costs That Don’t Lead to Better Care
Overhead costs should not seem like an economic burden to value. This is due to their contribution to high levels of cost efficiency and quality care. Thus, to relieve your medical facility of the economic burden, reduce useless costs or scrap them altogether.
Borrow Tips from Other Industries
Medical facilities should borrow a leaf of management concepts from other industries. This includes manufacturing. Therefore, healthcare workers should adopt effective cost-efficiency methods from other sectors.
Streamline Your Organization
Among the most effective ways to cut costs is optimizing the recording and billing services. Medical facilities work under the excess complexity of workers, which can create confusion.
Hospitals lose billions, and this is attributed to inaccurate invoices to clients. By streamlining healthcare operations, your facility is poised to grow exponentially in the long term.
Bring Your Staff Aboard
Successful medical facilities involve their staff in cost-cutting initiatives. This collaborative process ensures proper decision-making, discourages organizational misconduct, and aligns your employees to your company’s mission and culture.
At Envocore, we are dedicated to helping you achieve your company’s vision through optimized asset performance at minimal overhead costs. We are well versed in expert business solutions like water efficiency, lighting, building envelope, and smart utility metering.
We boast of a big market, and our able team has completed over 3,400 projects locally and abroad.
Interested in scaling up your business by cutting overhead costs? Contact us today, and we will readily create you a custom solution to reduce your organization’s overhead costs and boost its general efficiency.