How to Save Expenses in Hospital Management

The topic for the 1982 Asian Hospital Federation Study Tour is a popular topic around the world. Some have shortened it to two words, 'cost containment.' Cost containment is a term that has gained particular favor in the Health care field in the past few years. However, if administrators really analyze the term and its meaning, they will discover that the concept has always been an integral one in the operation of any private sector business. In the private sector of the economy, minimization of cost per unit of service is the bedrock of enterprise. But, in the health care field administrators have always been able to fall back upon the old cliche that the quality of patient care is more important than cost containment or cost efficiency. Times have changed, however, and administrators in the health, care field are now faced with more and more choices in determining how to use limited resources. In the past, hospital rates could simply be increased to offset rising expenses incurred because of improvements in the quality of care. It was always assumed that each dollar being spent was being spent wisely. With stricter controls on the flow of dollars into the health care system., hospital administrators need to emphasize that current funds must be used appropriately.