What equipment costs you the most in time and money to maintain?
Could you answer the question? Were you absolutely certain of your answer? If you had to back up your answer with proof, could you?
If you answered “yes” to these questions, congratulations! If you answered “no” to any of the questions, you are missing critical data into where your budget is being spent and how your staff is investing its time.
The September issue of Hospital & Health Networks explored the patients who have frequent hospital visits and high treatment costs in the article “Health Care’s Costliest 1%’”.
According to a report by the Agency for Healthcare Research and Quality, 1% of patients accounted for roughly a fifth of all healthcare spending in 2009, or more than $90,000 per person. Five percent of patients accounted for half of overall healthcare costs. A seperate report from the IMS Institute for Healthcare Informatics, found 1% of patients in a survey of 10.6 million health plan members accounted for 25% of their plan’s total costs, and 5% accounted for slightly more than half.
To address this issue and attempt to reduce the number of hospital visits and treatment costs, providers are identifying the high-frequency patients and developing care plans. Then providers are hoping case managers can build relationships with these patients to help encourage healthier habits and help them adhere to medications and care plans.
Does your facility have equipment that requires frequent maintenance? Do you know why? Do you have the data that shows how many labor hours have been spent on them?
This type of information is essential to reigning in budget-busting equipment and costly repairs. This data can help you tell when it’s time to replace a piece of equipment and help justify the replacement to administrators. A web-based maintenance management system, like FacilityDude’s MaintenanceEdge, can document all reactive and preventive maintenance done on any piece of equipment, including labor hours and costs. And by using the advanced search capabilities, you can create an equipment history report in less than a minute.
So you can know your costliest pieces of equipment and determine a plan to address them before they use up more than their fair share of your budget.