OpenTempo CEO Rich Miller was featured in Healthcare Finance News with his article on 3 Labor Cost Control Questions Every Healthcare CFO Must Answer.
He demonstrates that, in a climate where reimbursement rates are falling, costs are soaring, and patient satisfaction is tied to the bottom line, it is wise for any healthcare organization to focus on reducing costs directly under their control.
Labor, which typically represents 50-60 percent of healthcare operating costs, is one expense over which organizations have direct influence. Specifically, by tracking differential pay and overtime by cost centers, healthcare organizations can see a sizable reduction in their compensation costs.
To achieve this, CFOs need to have the data to address three critical questions:
- How much is it costing you to calculate payroll, overtime and incentive pay?
- Are you using cost and compensation data to make strategic decisions about how you use your resources?
- What is the true cost of providing services across the clinical areas you serve?
Healthcare Finance News is a publication of HIMSS Media.