Cost Cutting Tips for Health Organizations

Heating, Thermostat, TemparaturanzeigeRegardless of whether the organization is a hospital, university, another huge organization or a private business, they are all under pressure to cut costs. Every year, prices increase and this, together with cuts in funding for government organizations and increases in taxes for businesses, means that other expenses need to be cut if they are to continue to provide a good and adequate service or maintain the quality of their products. Here are a few suggestions that might help if you are in this situation.

Technology and Automation

Although this might need some initial investment, in the long run, it could save a lot of money and make your business or organization more efficient. There are so many areas that technology and automation can help in. It can take over some of the mundane tasks leaving your workers free to handle more important jobs. It can reduce the number of errors and stop the duplication of work.

There are no areas of the workplace that are unaffected by technology and automation and you need to make the most of its benefits.


One of the largest costs any business or organization has to face, is energy. Just for a moment, think how many lights are on 24 hours a day in a hospital, for instance. How much equipment they have to run, some of which is vital and used to save lives. You can’t suddenly just turn them all off. With a business, they could lose sales if they shut down some of their equipment each day, and this is not an option for anyone. There are two things that can be done that will help.

Firstly, educate your workers to be careful with their energy use. Things such as turning computers and printers off at night when they are not in use will save about 45 per piece of equipment per week. Over a year, that can amount to a lot of money saved. Secondly, compare business electricity prices on a comparison site like Utility Bidder, and you may be surprised by the deals that are available.


Communications are another huge expense that businesses and organizations have to cope with. The number of letters sent has decreased as many people now communicate by email, and that has automatically cut postage costs. But what about phone bills? They are as high as ever, and you need to do whatever you can to reduce them.

There are things you can do that reduce your phone costs, such as disposing of extra features such as call waiting and caller ID. However, the biggest cost saving can be by finding a better deal. All phone companies want your business, and with a bit of research, you could save a fortune on your phone bills.

Supply Procurement

Depending on the healthcare organization or business, supply procurement can vary. Also, there’s both medical supplies and office supplies used on the administration side of the hospital, healthcare facility or health-oriented business.

Clearly with medical suppliers, there are approved suppliers to work with to ensure they’re up to the standard required. Therefore, there’s only so much that can be done to cut costs without sacrificing healthcare standards.

With other supplies needed, this is a different matter. General office supplies including consumables, chairs, desks, storage cupboards and other items are available from many providers. This gives the organisation far more freedom to find a supplier offering the best deal.

Passive Savings on Energy

Go beyond cost cutting moves like picking the best electricity supplier by looking at other ways to reduce direct or indirect expenses. Here are some ideas to reduce energy waste:

Strategically position blinds – Getting blinds put up to block out the sun in the afternoon prevents blinding light hitting computer screens or warming up a packed office.

Check all windows are double-glazed – Older office buildings or other building structurers may still have single-pane windows which were never upgraded to double-panes to insulate better. If the business is planning to stay at that premises for several additional years, then it is probably worth upgrading.

Seal up windows and doors – Adding weather stripping to windows and doors where you can feel a draft is a good idea. For older windows with caulking that’s breaking off, get a new caulking strip to reseal the space. Also, consider adding automatic door closers that swing the door closed regardless of whether a staff member remembers to do so or not.

Cutting costs wherever possible could mean the difference between success and failure of a business, or an organization being able to deliver a service as good as users expect. You should investigate ways to cut your costs without delay.

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