Cutting Cost Can Be Easier Than You Think

Have you heard about the $16.00 muffin?  Yes, that’s what the Department of Justice was reported to spend per muffin for the attendees at a conference they held just a few weeks ago. Now, it’s my understanding that this wasn’t the whole story, since the Washington Hilton, where the attendees stayed, says that the $16 dollars wasn’t just for a muffin, but was the cost per attendee for a continental breakfast.  But since it was such a good story, I thought I would report it anyway since it makes my point for my blog today!

There are many little and big things that can cut costs at your healthcare organization, that won’t even be missed. For example, how many subscriptions do you need for your magazines?  We sometimes see thousands of dollars a year showing up in this cost center. Do you need to buy everything prepackaged and pre-made for your food service department or would it be more cost effective to make some things from scratch? Are you still buying hundreds of calendars every year for your department heads and managers, as I used to do, or can you now eliminate them since everyone has a calendar built into their Microsoft Outlook? Yes, these are little things that add hundreds-of-thousands of dollars to your supply budget annually when you add them all up.

Just last night my brother-in-law, who is a travel agent, gave me another cost cutting idea that I never thought about.  What he told me was that he has observed that when an airfare, hotel and rental car is booked with his agency and then is paid for by a corporation, no one ever searches out a better rate with him.  They accept whatever he quotes!

However, when he is called by an individual who has to book their business travel arrangements on their credit card and then charge it back to their company for reimbursement, they are obsessed with getting the best fares and rates possible so they don’t build up their credit card charges.  What he recommended is that all business travel arrangements should be booked and charged back to corporations by individuals, and then you would see your organization’s travel expense drop precipitously.   

I thought this was just another great cost cutting idea that wouldn’t cost your healthcare organization anything to implement. That’s why I continue to say that it is easier than you think to cut cost, if and when, you start to focus on eliminating the big and little things that are no longer needed.

Filed Under: Cost Avoidance • savingsblog