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Related Experiment Videos

Managing costs through clinical quality improvement.

Ken Davis1, Robert Otwell, Jeff Barber

  • 1North Mississippi Health Services, Tupelo, Miss., USA. kdavis@nmhs.net

Healthcare Financial Management : Journal of the Healthcare Financial Management Association
|April 22, 2004
PubMed
Summary

Care-based cost management (CBCM) shifts focus from traditional expenses to clinical quality. This approach targets processes of care, complications, and social issues as key cost drivers for financial managers.

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Area of Science:

  • Healthcare Management
  • Health Economics
  • Clinical Quality Improvement

Background:

  • Traditional cost drivers (personnel, equipment, supplies, IT) are nearing their cost-reduction limits.
  • Existing cost-management strategies may not fully address the complexities of healthcare expenses.

Purpose of the Study:

  • To introduce and define Care-based Cost Management (CBCM) as an alternative cost-management paradigm.
  • To highlight the shift in focus from traditional cost drivers to alternative organizational cost drivers.

Main Methods:

  • Conceptual framework development for CBCM.
  • Analysis of traditional versus alternative cost drivers in healthcare.

Main Results:

  • CBCM identifies processes of care, complications, and social issues as critical alternative cost drivers.

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  • This approach suggests that improving clinical quality is fundamental to effective cost management.

    • Conclusions:

    • Care-based Cost Management (CBCM) offers a novel strategy for healthcare financial management.
    • Focusing on clinical quality and related factors is essential for sustainable cost reduction in healthcare settings.