Understand how Reimbursement Contributes to the Need of Cost Containment

Understand how Reimbursement Contributes to the Need of Cost Containment

Understand how Reimbursement Contributes to the Need of Cost Containment 150 150 Peter

Understand how Reimbursement Contributes to the Need of Cost Containment

You have been placed on a committee in your health care organization. The committee has to create a set of cost containment strategies that will positively impact (decrease) operating expenses. The committee is also challenged with increasing reimbursement.

Provide 5 cost-cutting strategies that the committee could recommend to the executive board.
Describe how these cuts will benefit patient care or business systems.
Provide 5 ideas on how to increase revenue or reimbursement. This answer can include short-term and long-term goals.
Describe how these revenue or reimbursement systems benefit patient care or the business systems.
Provide at least 2 references that reinforce the strategies you have chosen.

Please submit your assignment.

Sample Paper

Understand how Reimbursement Contributes to the Need of Cost Containment

The focus of the healthcare systems and hospitals is on managing the costs. More than just cutting costs, leaders of the healthcare system are struggling to get a finance system that is predictable in the health care systems. The balance between delivering positive patient services and the cost charged is very fragile. There are various cost-cutting strategies that can be used in the healthcare systems. These cost-cutting strategies should ensure that the patients’ health is a priority while considering different opportunities to cut costs.

Cost Cutting Strategies that Committee can Recommend and their Benefits to patient care or Business Systems

Cost-cutting strategies ensure that the levels of expenses are maintained to avoid spending unnecessarily and enhance the profit without causing any losses to the healthcare organization. There are various cost-cutting strategies that can be used in the healthcare system to cut costs while providing better healthcare services to the patients (Mendoza, 2020).

One of the cost-cutting strategies that the committee can recommend to the executive board is reducing the overhead cost that does not contribute nor add value to better health care services. The unnecessary costs that do not have any value on quality health care, such as expenditure on administration, should be reduced.

Taking some tips from other healthcare services is another strategy that the committee can recommend. It is essential for healthcare practitioners to borrow cost efficiency measures used by other healthcare organizations and have succeeded in cost-cutting.

Raising patient satisfaction is another strategy that can be implemented. Patients’ satisfaction in the healthcare environment has proven very important in cost-cutting. Patients unsatisfied in a healthcare facility may develop a negative attitude towards the healthcare organization, which may raise more expense on customer care.

Another strategy is standardization. This is a significant opportunity for healthcare organizations that focus on reducing costs in a healthcare facility. Consolidation of the market is increasing rapidly, which has threatened the argument for standardization of services. Healthcare organizations should hire people specialized in information technology, human resources, catering services, laboratory services, and pharmaceutical services to cut costs. This helps free up healthcare money used for investing in clinical, technology and other services. Standardization of services through partnering with one person reduces the costs and increases patient satisfaction.

Taking a closer look at the healthcare providers is another strategy that can be recommended. Cost-cutting in healthcare facilities involves taking a deeper look at the healthcare practitioners. This strategy considers offering extra training to health practitioners, minimizing overtime, retaining associates, and recognizing programs. This may lead to long-term cost-cutting.

How to Increase Revenue or Reimbursement and Benefits to Patient care or Business Systems

Healthcare practitioners mostly experience a delay in reimbursement or revenue and there are various ideas on how to increase revenue or reimbursement (Hung & Hager, 2019). One idea is to optimize revenue or reimbursement cycle management. Reducing the unnecessary loss of revenue or reimbursement is one of the most effective ways of increasing revenue or reimbursement. This includes reducing insurance claims, clearing patients’ finances early to avoid bad debts and engaging in proper billing practices. Another idea is reducing unnecessary patient testing. This can bring a positive impact on annual revenue by mitigating unnecessary expenses. This may also help the patients to save money used on unnecessary tests.

Curbing late or no-show appointments is another idea on how to increase revenue. This can be done by charging cancellations that are done late and also setting a no-show fee. The healthcare facility should also provide virtual visits for certain types of appointments. This would help increase revenue or reimbursement.

The motivation of healthcare practitioners also increases revenue. Healthcare practitioners are the most valuable resources in the healthcare system. Motivating them and giving them positive feedback can make them happy. This can increase revenue or reimbursement.

Another idea is building a better appointment schedule. Optimization of appointment schedules may also increase revenue or reimbursement. Creating virtual patient visits is more flexible and can also save time. Patients can also avoid waiting around the healthcare facility.



Hung, C., & Hager, M. A. (2019). The impact of revenue diversification on nonprofit financial health: A meta-analysis. Nonprofit and voluntary sector quarterly48(1), 5-27.


Mendoza, R. L. (2020). Cost-Shifting and Cost-Cutting as Joint and Mutually Reinforcing Strategies in the Financial Management of Hospitals and Similar Healthcare Organizations. Journal of Health Care Finance.