PubMed · 1995 · 30 citations · 0 references
Health ProfessionsOrthopaedic SurgerySurgeryHealthcare AdministrationHospital AdministrationOrthopedicsHealth Care CostsHealth Care Expenditure AnalysisHealthcare BudgetingHealthcare Cost AnalysisHospital EconomicsSurgical Resource UtilizationCost-effectivenessHealth Care Cost ManagementHealthcare Cost ManagementOrthopaedic ImplantsOrthopedic ImplantsStrategic Cost ReductionSurgical Cost-effectiveness AnalysisSurgical Procedure Costs
Health care costs in the United States exceeded $900 billion in 1993, accounted for about 14 % of GDP, and have risen faster than inflation for over a decade, prompting a national focus on expenditure containment. In 1990, the Hospital for Special Surgery launched a cost‑awareness program to address a $4 million annual deficit and achieve cost containment. The program involved staff reviewing supply, implant, and equipment costs, forming committees, conducting workshops, disseminating feedback via posters and newsletters, and using statistical analysis for ongoing education. The initiative achieved major savings by recycling implants, cutting costly and unnecessary supplies, and challenging vendors for lower prices, while preserving care quality and fostering stronger collaboration among staff, administration, and finance.
To help balance the operating budget of The Hospital for Special Surgery, which was encountering an annual major deficit of $4 million in 1989, a program of cost awareness leading to cost containment was instituted in 1990. Costs of supplies, implants, and equipment were identified and reviewed by the hospital staff, including orthopaedic surgeons, orthopaedic residents, health care personnel, and administration, for cost effectiveness. Methods to accomplish the goals included structuring committees for information; workshops organized by different services to affect change; feedback to health care professionals through posters and newsletters; and statistical identification for continued education. Major cost savings resulted from recycling wasted implants, reduction of costly implants, and reduction of unnecessary supplies. As a result, vendors had been challenged, leading to more competitive prices. This program has opened new avenues of cost reduction without sacrificing quality of medical care and has contributed to a breakdown of barriers between medical staff, administration, and finance, leading to a strong hospital-team commitment. The price of health care in the United States in 1993 exceeded $900 billion. Health care expenditures now account for approximately 14% of the gross domestic product. Health care costs have been rising faster than the inflation rate for more than a decade. The result is the current national focus on containment of health care expenditures.