In our conversations with health-care executives around the country, a refrain common across-the-board is their desire to cut costs while maintaining quality.
As with most aspects of health care today, this is more succinctly said than done. However, an opinion piece in The Washington Post by researchers Vijay Govindarajan and Ravi Ramamurti examines ways in which nine private accredited hospitals in India are delivering quality care at reduced costs, often for 5 to 10 percent of U.S. costs, all while matching the outcomes demanded of U.S. hospitals.
With the economic situation in the United States rapidly becoming one in which the middle class is diminished and the gap between rich and poor only continues to widen, there is wisdom in what India is doing that can be applied to our country.
This level of coordination is simply not present in U.S. hospitals and most are registering volume levels that don't justify "duplicating specialized care," the authors assert.
In the U.S., the authors point out, we're in the midst of doing the opposite: laying off lower-skilled workers and adding routine tasks to a doctor's responsibilities.
Physicians also receive a fixed salary, meaning there is no fee-for-service program. Furthermore, each hospital keeps its medical professionals informed of financial matters. Once again, all of this is in direct contrast to the U.S. model.
As health-care executives, are there practices of other countries that you believe we would be advised to adopt in this country? What are the best ways you've found to reduce costs at your organization?
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