There are plenty of behind-the-scenes administrative responsibilities in the healthcare industry that keeps an organization running smoothly. Unfortunately, these administrative duties are not free. However, there are a few different methods for reducing administrative costs in healthcare. Read on to learn more about administrative costs and how you can streamline these processes.
What are Administrative Costs in Healthcare?
The healthcare system accumulates a variety of costs, from medical services to supply manufacturing. One of these expenses is healthcare administration costs.
This type of cost refers to any amount that does not have a specific delegated function, such as salaries or information technology. Many of these administrative expenses are necessary parts of maintaining a successful healthcare system. Healthcare management should allocate funds according to the needs of the practice.
Ways to Reduce Hospital Administrative Costs
While some administrative expenses are unavoidable, there are quite a few ways to automate processes and cut hospital costs. Let’s take a look at some examples of administrative costs in healthcare and how you may be able to reduce healthcare spending.
Update Outdated Practices
Humans are creatures of habit, but sometimes old habits are no longer beneficial. When looking for where you can reduce administrative spending in healthcare, consider updating outdated practices to more modern and cost-efficient methods.
Using integrative tools or streamlining processes can reduce costs and time spent on hospital administration tasks. By updating practices such as sending faxes through traditional methods, you’re able to save time and reduce your budget. Online faxing for healthcare organizations allows for secure, HIPAA-compliant communication without the additional time of waiting by the fax machine to send and receive information.
Adopt Modern Technology
In this modern age, sending and receiving data via advanced technology is the most efficient and affordable method for healthcare organizations. Modern technology can help data be shared quickly between providers and patients.
The use of automated and advanced technology, such as an online fax system, can streamline your current practices and reduce hospital costs. Instead of spending precious time and money sending traditional faxes, an online service can securely send your fax online swiftly and securely. Services like iFax also offer the option to integrate with your current tools for easy automation that cuts an additional overhead cost of new software.
Evaluate High Expenses
Healthcare organizations may be currently using multiple vendors to receive all the necessary supplies for their practice. However, funneling out money to multiple vendors can be a costly choice that should be reconsidered. Reducing administrative costs in healthcare may mean contacting current vendors to bargain a lower price. Another option is to find new vendors that will provide the same quality for a lower price. Choosing the same quality of products from vendors offering a cheaper price will save the healthcare administration some money without decreasing the quality of care patients receive.
Furthermore, outsourcing certain administrative duties may be a cost-efficient choice for some organizations. Evaluate current salaries and consider where outsourcing work may be the best option. Not only will this reduce your costs, but it may boost employee morale. If certain tasks are outsourced, current employees will have less to stress about.
Streamline Accounts Receivable
Time spent tracking payments from patients after their primary care visits is a crippling administrative cost in healthcare. Administrations spend too much time filing statements, sending bills, and reaching out to patients to remind them of payments. Luckily, there are better ways to handle the time and costs of billing and contacting patients, and managing the payment process.
Though the initial accounts receivable analysis process may be time-consuming, reviewing patients with outstanding balances and categorizing them may save you time in the long run. Instead of focusing your efforts on constant communication with all patients, pay close attention to patients that fall into the gray area of payment for their healthcare services. If it is likely they will send payment after a follow-up, consider investing in reminders for them. However, if you are confident in the patient’s payment status, save time and money by forgoing consistent reminders.
Streamline Provider Interactions
The interaction between the healthcare provider and the patient can be another expensive administrative cost in healthcare. Introducing integrative tools, state-of-the-art technology, and specified administrative roles can simplify the provider-to-patient interaction and reduce costs.
By improving the interaction between provider and patient, both parties will be more likely to achieve their desired goal. With new and improved processes, administrators can reduce the level of miscommunication and mistakes and the time and money spent correcting errors.
Reduce Administrative Costs with iFax
One of the main methods of reducing healthcare administration costs is investing in modern technology to simplify the responsibilities administrators handle. iFax provides an effortless online faxing system that allows you to send patient information quickly through electronic transactions without breaking HIPAA compliance safely.
Our integrative technology works with your current software to make sending and receiving faxes easy. Additionally, our digital platform is accessible anywhere, so you can send your fax on the spot from wherever you are. Sign up today to find out how you can start sending faxes and reduce your administrative healthcare costs.