By Matt Keahey, Area Vice President, Medxcel Facilities Management
With a new year on the horizon, you’re again challenged to find new ways to curb spending, get more done, boost revenue, patient satisfaction, and compliance. After all, your job as a healthcare leader is to make each year better and more profitable than the last.
The key challenge, of course, is that the cost of maintaining healthcare facilities has risen considerably. So has your need for specialty skills to fulfill evolving regulatory requirements and service needs.
The good news is that curbing wasteful spending while multiplying your facilities’ capabilities, outcomes and ROI is obtainable for your healthcare organization. But it will require you to take a hard look at your current state, build internal capabilities and break free from external service contracts.
The savings that can cost you double
Often, when hospital execs set out to cut expenses, many choose to cut in-house labor. The short-term savings come at a high, long-term cost, however: Work still must be done, but without the staff or skills to get it done, facilities are pressed to rely on costly external services. Soon enough, they’re handcuffed to external service contracts that cost far more than it would cost to hire and train a skilled worker in-house.
Consider, for example, investing in a senior-level technician at $80,000 per year. This is an associate who’s easily accessible on-site to make crucial repairs with minimal downtime and patient diversion. Someone who knows your processes and systems, the needs and quirks of internal customers, and whose loyalty lies with your organization.
Without that associate, you could easily pay $160,000 per year on a contract for the same work (or less work, most likely)—except that service would be hindered by added downtime, varying contractor availability, and limited knowledge of your organization. [Read more…]