How to Cut Costs but Save Jobs

by Julie Kirst 9/22/2009 10:05:00 AM

Figuring out how to cut costs and not jobs is on everyone’s mind, and in our September issue the article Cautious Optimism shares some great best practices on how to whittle down expenses while saving jobs. Here’s some of what Steve Kehrberg, VP, supply chain/clinical engineering at Catholic Health Initiatives (CHI), Tacoma, Wash, shared.

Kehrberg has employed a multipronged strategy across CHI’s 70 hospitals, 22 states, and more than 350 clinical engineering staff members. A repair depot for some equipment, including intermittent suction units, IV pumps, endoscopy units, and other smaller items, has helped reduce expenses when spread out and employed systemwide. With some small critical access hospitals using only one biomed, and others employing 18 in-house clinical engineering folks, Kehrberg has also transferred support from larger shops to smaller ones to avoid using more costly service providers.

He said: “We have also looked into removing some of the service components from some of the contracts. For example, on some of the flat plate detectors for digital cath labs, we have removed OEM detector coverage from the service contracts. And we are covering them in a risk pool with our internal insurance company. Basically, we are self-insuring the glassware for the detectors on the cath labs, and that has been successful for us.”

We’d like to know what strategies you’ve used. All are welcome to comment on the blog so share your tips and help other departments thrive.


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Comments

Posted by Russell at Advanced Scientifics, 9/30/2009 5:18:20 PM

I hope to hear more about how organizations on the patient side are reducing costs.

I come from a manufacturing single-use, disposable medical devices. It's difficult for use to experiment with alternate materials so we are always looking a processes as well as different strategies in manufacture and assembly. We recently identified what may materialize into a big savings just from a relatively slight change in creating aseptic filling units.

Posted by travel nursing, 10/7/2009 2:12:08 AM

Great post on how costs should be reduced....all companies now take the easy way out and just fire people...when they might not even deserve it.

Posted by friend quotes, 10/8/2009 5:00:44 AM

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Posted by vsarmiento, 11/10/2009 6:21:40 AM

There are a number of ways one can cut down on operating cost.   One tried and proven way is to gain control on your budgeted cost of parts used on equipment maintenance needs. One good example is to identify key PM components and entering into a partnership with the OEM company for "Parts Only Contract".  A biomed dept. can easily quantify how many parts are required to be replaced during the required PM interval of any given particular equipment type, i.e., Ventilators, or anesthesia machines, Dialysis, etc.  Multiplied by the required yearly PM frequencies, to the number of units in the inventory will give the users the minimum amount of PM parts, add to this the experienced based amount of repairs done for the year will give any entity the amount of  $$ needed to maintain a particular type of equipment.  Since the resultant  $$ figures will be the amount needed to ensure the proper functionalities of a particular type or group of equipment, Biomed armed with this information at this point can solicit, negotiate and enter into an exclusive "parts only contract" that will help achieve this cost containment action. With this approach, biomed will have the needed leverage to negotiate /enter into an OEM company contract, since they are re-assuring the OEM vendors the continued proper functionality, as well as the safe operation of their respective products. This will be a win - win approach for both the vendors (a sure revenue + continued product reliability is ensured thru proper maintenance) and the Owner/users for (discounted parts pricing + continued OEM supplies + preforcasted budgeting) .

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