How Healthcare Companies Can Save Money During COVID-19

The COVID-19 pandemic has had a major impact on hospitals and other healthcare institutions. In areas experiencing outbreaks, hospital staff members have been redeployed to handle COVID patients. Hospital rooms reserved for elective procedures have been turned into ICU beds. While these heroic actions have saved lives, they have challenged the finances of these organizations.

With the cancellation of elective surgeries and other routine healthcare procedures, many healthcare practices have seen a serious decline in revenue. Fortunately, this should be a temporary setback as researchers work toward a vaccine and the illness runs its course. In the meantime, every healthcare organization needs to look at ways to decrease spending until income levels return to normal.

Minimize Non-essential Spending

The COVID-19 pandemic provides several logistical challenges. To fulfill their primary purpose, healthcare institutions must ramp up certain parts of their operations. For example, processing COVID-19 specimen collection kits must have priority over other test results.

At the same time, these institutions must cut back on other sectors. Because income is not coming in as usual, healthcare institutions must take a serious look at their day-to-day operations as well as any planned special projects. Some healthcare practices have shifted their staff roles to prevent layoffs. Temporary furloughs may be necessary for nonessential staff. If your organization can pause new construction, renovations or other updates, it may help keep the facility within budget.

Negotiate with Vendors

The pandemic is a time when every part of the healthcare industry must work together. Most vendors understand that healthcare facilities are experiencing financial challenges. They also want to avoid the hit to their reputations that would come with a refusal to cooperate with healthcare providers. Your organization should reach out to its vendors to work out a temporary payment plan or discounted rates during the emergency. Cooperative vendors can leverage their participation into positive publicity.

Review Insurance Policies

Insurance coverage for healthcare organizations is expensive. It is a necessary budget item, but it does not provide an immediate benefit during a crisis. By contacting its insurance provider, a healthcare organization may be able to negotiate a reduced rate in light of the special circumstances. It is also possible that, due to COVID-19’s status as a national and state emergency, your institution may be able to make a claim for lost business revenue.

Outsource Logistics

Many of the people who get involved with healthcare and medicine do so because they are passionate about caring for others. It is not until they get involved with the hospital or laboratory setting that they realize the amount and cost of the logistics involved. Laboratory management is more than determining test results. Moving samples from a collection site to a lab safely and accurately is a critical part of patient care.

Outsourcing lab logistics can save your organization both time and money. Because the logistics partner specializes in working with healthcare organizations, it already has the necessary infrastructure to keep things running smoothly. In the case of COVID-19, partners like Path-Tec can reliably supply a hospital with specimen collection kits and transportation materials. We have the resources to handle the safe transport of specimens and can track their progress in real time. This frees your staff from several laboratory management duties while providing more accurate specimen information.

At Path-Tec, we are committed to helping healthcare facilities handle their logistical needs. When a hospital or lab partners with us, we take the burden of lab management out of their hands. Our lab logistics solutions allow hospital staff to order and receive supplies, register and track specimens and handle logistics billing efficiently. If you are looking for a money-saving logistics solution for your organization, contact us today for more information.