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. 2010 Mar;64(3):52-9.

Cost reduction: identifying the opportunities

William O Cleverley  1 , James O Cleverley
Affiliations
  • PMID: 20214107

Cost reduction: identifying the opportunities

William O Cleverley et al. Healthc Financ Manage. 2010 Mar.

Abstract

Inpatient and outpatient patient-encounter components provide a far better indicator of relative cost position than measures such as cost per adjusted discharge or cost per adjusted patient day. Cost per encounter can be expressed as the product of three key cost drivers: intensity of services, productivity/efficiency, and resource prices/ salaries and wages. Cost reductions result from actions taken in two primary areas: utilization of services and cost efficiency.

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