AbstractResearch has proven that the healthcare organizations need to be more attentive to their code pricing list in order to avoid over charges and low revenue of their supplies and encouraging their staff members to utilize one vendor will decrease costs. Quarterly inventory was examined to decipher the problem. Spreadsheets (graphs) were also conducted to provide a complete view of where the losses occurred. The research has proven that regular inventory of supplies, minimal vendors, and update of code pricing list is mandatory in eliminating or decreasing high cost. More in depth information is discussed.
Feeling overwhelmed with requests for a huge variety of medical supplies, then you're not alone. The biggest expense in the medical industry is having multiple manufacturers for one product. This forces hospitals to seek savings opportunities at different levels. One opportunity for substantial cost savings most hospitals consider is the knack to control the expensive products highlypreferred by doctors (Fine, 2004).
English: pricing of joint products
Fair Pricing
English: FDA poster warning against the use of the...Today, Healthcare organizations thrive to cut supply costs by the standardization of their product usage. The secret to successful product standardization is making certain that the process includes all stakeholders (http://www.infosutions.mckesson.com). A number of organizations have found that it helpful to also have a product standardization committee. The committee should include knowledgeable physicians partake in the technology assessment product standardization committee; to empower the physicians who are not willing to comply. The committee should also have a physician from different services, focusing on high-dollar physician preference products. This allows for new products to be presented to the committee for review, consideration, and approval on a monthly basis (Fine, 2004).
The key to assuring cost savings through product standardization is to appropriately educate doctors about the vital role they play in this process. Communicating the cost implications for the organization to the physicians cansometimes motivate...