[The role of cost control in hospital management] The concept of cost control

Abstract: For a long time, the management of hospitals have been characterized by sloppy, cost-neutral management, if not strengthened in a timely manner, will not only produce great waste, but also cause additional cost pressure on the hospital. Reasonable cost control is an important work in hospital operation and management, if the cost control is good, the hospital will get a long development and get the maximum economic benefits.

Keywords: hospital, operation management, cost control

Chinese Classification Number: F243

Literature Identification Number: A

Article Number: 1004-4914(2012)09-124-02

In the face of the increasing competition in the medical service market and the rapid development of the health care industry, and in the context of the government's low investment and the hospital's operating costs are increasing, many hospitals have introduced the concept of economic management and cost control. Improve the hospital cost control work, for reducing and controlling the cost of consumption, improve the economic and social benefits of the hospital is of great significance.

I. The importance of cost control in hospital business management

1. Overview of hospital cost control. Cost control is the process of cost formation of all the consumption of strict calculation, regulation and supervision, timely prompt deviation, and take effective measures to correct unfavorable differences, so that the cost is limited to a predetermined target range to ensure the realization of benefits.

Reasonable cost control is not just cost control that focuses on savings, and simply reducing cost expenses is not the ultimate goal of management. Reasonable cost control should be to seek the best combination of quality, efficiency and consumption, in order to achieve the realization of the least amount of consumption in exchange for more benefits in hospital management.

2. The importance of cost control in hospital management. Hospitals in a certain period of time the amount of costs, in fact, implies the size of the business risks faced by the hospital as well as the amount of revenue that may be obtained. No matter what the situation to reduce costs can increase profits, so cost control in hospital management has a very important role.

Two, how to cost control in hospital management

1. Improve the awareness of cost control. Cost control is closely linked to the economic benefits of the hospital, but also closely related to the interests of health care workers, to maximize the benefits of the hospital, everyone should be involved in cost control, learn to calculate carefully, open source and reduce expenditure, strengthen the cost consciousness, the formation of a good culture of thrift and frugality. Hospitals can strictly control the growth of operating expenses and office expenses of each department through the budget system to reduce the consumption of controllable expenses; strictly control the use of unplanned labor through the posting and editing to save the expenditure of wages and welfare costs; encourage logistic workers to increase revenue and save money to reduce costs.

2. Mobilize all staff cost control enthusiasm. (1) Leaders take the lead in practicing economy, and set an example for the staff. Leadership in the hospital economic management is the key, the level of decision-making and attention to the degree of implementation of the strength of the staff to participate in the enthusiasm, determines the success or failure of the work of the cost of operation, so it is necessary to turn the leadership of the decision-making into a conscious action. The president and the department director, the head nurse to take the lead, to create a "everyone talk about saving, everyone is a cost manager, controller," a good environment.

Because cost control involves all employees, it must be driven by the leadership, the leadership role is very necessary. Cost control on the hospital leadership requirements: First, attention and full support for cost control. Whether personnel at all levels are serious about cost control often depends on whether the leadership fully supports it. Secondly, it has the determination and confidence to accomplish the cost target. Third, the spirit of seeking truth from facts. The implementation of cost control, not to be too ambitious, more should not be hasty, too hasty. Only down-to-earth, step by step, in order to gradually achieve results. Fourth, lead by example, strict control of their own responsibility cost, otherwise there is no appeal and persuasive power. (2) the establishment of a reward and punishment system, the implementation of reward and punishment incentives. First, we must summarize in a timely manner, a good way, a good method should be promoted in a timely manner, praise cost management and control of good performance in the work of the personnel; Second, the development of practical management methods for the implementation of material incentives, the provision of clear rewards and penalties and standards, to mobilize the staff into the hospital cost control and management of the enthusiasm to achieve a combination of spiritual encouragement and material incentives.

3. Improve hospital management. The focus of the hospital economic management is the management of medical expenses, to improve the level of economic management of hospitals, it is necessary to increase the supervision of medical income and expenditure. Such as before ordering medical equipment to develop a sound plan to control costs within the minimum. Through the reflection and control of costs and expenses, prompting management to take reasonable measures to improve the management level.

At present, most hospitals adopt effective material management for cost control, mainly in three aspects: (1) open bidding procurement. Hospitals vigorously implement open bidding procurement, reduce procurement costs, the full implementation of drugs and materials centralized bidding procurement, centralized bidding procurement to reduce the price of patients, so that the majority of patients get the benefits. (2) Strengthen the inventory management of materials to reduce loss and waste. The hospital adopts computer network system, which not only improves the entry and exit system of logistics management, but also improves the efficiency of checking the entry and exit of medicines, and reduces the consumption of redundant manpower. (3) Strengthening the management of the use of consumable materials in the process of diagnosis and treatment. By setting up a method for the use of consumable disposal of medicines, medicinal doses and other equipment, the quality of medical care is ensured while rationalizing the use of medicines and consumable materials, reducing costs and improving the quality of hospital management.

4. Implementation of cost control system. Hospitals should establish a systematic management concept, the hospital's cost control management as a systematic project, emphasizing the whole and the overall situation, the object of the hospital cost control management, content, method of all-round analysis and research. First of all, the hospital should map the internal economic operation and make a systematic design for cost control. Secondly, the focus of cost control management should be shifted from internal to external, from the traditional type of management to heavy management decision-making type of management, can not be confined to the internal work of the hospital, but should be extended to the outside of the hospital, to analyze the development of the situation, such as patients discharged from the hospital follow-up issues, to remind the patients to come to the hospital regularly to repeat the consultation, and so on.

5. Enhancing hospital competitiveness. In the rapid development of medical and health care, the continuous reform of the health insurance system so that patients seeking medical treatment to choose the hospital has more space, the hospital in order to compete in the market in a favorable position, have to participate in the market competition. Therefore, hospitals should introduce and learn from the successful experience of business management, the implementation of a comprehensive cost control system within the hospital, and strive to reduce costs, reduce the burden on patients, and effectively occupy the medical market.

Three, the role of cost control in hospital management

Hospital management activities, cost control is the key to the success or failure of the cause, especially as a non-profit hospitals, insufficient sources of funding, to establish a sense of cost, the implementation of cost control is more important. Hospital leaders on the construction of hospitals must have long-term development planning, cost control is an important element of business management only ideological high attention and with the implementation of the organization, in order to form a complete and efficient cost control system.

Reasonable cost control plays a very important role in hospital business management, is to strengthen its own constraints, improve the effectiveness of a proven method in the increasingly competitive medical market today, the hospital in order to survive and develop, we must reduce the cost of services, to create a more powerful protection, improve the level of hospital management and operation, and to promote the prosperity of the hospital.

References:

1. Ding Shaoqing. Analyzing the role of cost control in hospital operation and management. Modern Enterprise Culture, 2009(30)

2. Zhao Wenli. An analysis of cost control in hospital operation and management [M]. Economic Forum, 2008(5)

3. Han Yu. Discussion on the principles and guarantee measures of hospital cost control, Shanxi Finance and Taxation, 2006 (7)

4.Over Wei. On cost control in hospital management. Modern Hospital Management, 2008 (12)

(Author's unit: Tangshan City People's Hospital Operation Office, Hebei Tangshan 063000)

(Editor: Ruo Jia)