Any cost containment programme should be viewed as a continuing programme and one which should maintain the critical balance between quality and the cost of service.
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Certain hospital costs are seen as being controlled more by the physicians than administration. Case-mix, admissions, scope of service, intensity and length of stay fall in this class.
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The basis of cost containment is by self-discipline (humanism, efficiency and morale) and financial discipline (capital control, utilisation control and budget control), by intensifying the organisational awareness by everyone from the class four employee to the chiefs of various services of the processes available to contain them.
The following is a checklist for cost containment to achieve improved efficiency with limited resources.
1. Reduction in staff by eliminating redundant positions
2. Budget control instituting a department wise quarterly budget variance report to review actual to budget comparisons and pinpoint problem areas
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3. Computerisation of patient accounting and administrative records (payroll, accounts payable and receivable, budget)
4. Computerisation of inventory management
5. Streamlining paperwork
6. Reducing dependence on outside services by creating them in-house
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7. Participation in shared services with other neighbourhood hospitals
8. Developing in-house servicing and maintenance facility
9. Control on stationary, forms, duplicating and printing
10. Shutting down electricity when not in use
11. Shutting down AC plant at night where possible
12. Market surveys for less expensive products
13. Plan-ahead purchasing
14. Eliminating wastage and pilferage
15. Good security and vigilance
16. Standardisation
17. Economy in supplies and expenditure
18. Motivational training for physicians and other staff.