The American Hospital Association (AHA) has released a new report on how hospitals can better manage their costs while preserving quality in healthcare delivery.
The 25-page reports focuses on what it considers to be the three hallmarks of strategic cost transformation: cost management, business restructuring and clinical transformation.
It assumes that cost reductions will be required due to the reimbursement environment moving forward, and that cost-controls should hew to projected capital shortfalls as closely as possible, according to the report published through the AHA's Health, Research and Educational Trust and written by the Kaufman Hall consulting firm in Skokie, Ill.
Meanwhile, the United States has the world's highest hospital costs, the Los Angeles Times reported.
According to the report, a well-managed hospital meets aggressive cost-management targets, uses the "greater good" to drive decision-making and has a structured process in place to push necessary changes. And cost-competitive hospitals also will respond by keeping staffing in proportion to market and patient demands.
The report, "A Guide to Strategic Cost Transformation in Hospitals and Health Systems," is part of the association's Hospitals in Pursuit of Excellence initiative, according to AHA News Now.