Why making the mindset shift to zero-based budgeting can lead to substantial cost savings for your hospital. 

 

 

  Episode Introduction

 

In Episode 41 of The Healthcare Leadership Experience, Lisa is joined by her show producer Lisa Larter. Together they discuss zero-based budgeting for hospitals. 

 

As Lisa Miller comments, ‘’Sometimes it's not about pricing. Sometimes it's not about consolidation. Sometimes it's going through your hospital's budget…department by department. Test it out, ask some questions. It’s definitely a different approach from traditional budgeting. It's very precise.’’

 

This episode is sponsored by VIE Healthcare Consulting® which has proudly helped hospitals save $772 million since 1999. 

 

Show Topics

• Starting from the ground floor; why making the mindset shift to zero-based budgeting can lead to substantial cost savings for your hospital. 

 

• Taking a deep dive into your service levels: If your minimum service level is 15 per month, how many of those services is your hospital really using? 

 

• Combining zero-based budgeting with additional strategies and a recommendation from Lisa Larter,‘’If I increased my prices and/or sales by 10% and reduce my total costs by 5% I would net out at more than double my profitability in the previous year.’’

 

• How adopting a cost analysis by category or department can help to identify hidden overlooked cost savings opportunities. 

 

• The pros and cons of zero-based budgeting, and why subscription services costs offer a good starting point. 

 

• How reviewing every new maintenance contract for one hospital resulted in multi-million dollar savings for one hospital. ‘’No-one wants another committee, but if you have other people asking ‘’why are we doing it this way?’’ you get different thinking and answers to questions.’’

 

• The need to recognize ‘’decision fatigue’’ and a powerful example of how to avoid it.

 

Show Links

Connect with Lisa Miller on LinkedIn

Check out VIE Healthcare and SpendMend 

 

What To Do Next:

1. Subscribe to The Economics of Healthcare and receive a special report on 15 Effective Cost Savings Strategies.
2. There are three ways to work with VIE Heathcare:

• Benchmark a vendor contract – either an existing contract or a new agreement.
• We can support your team with their cost savings initiatives to add resources and expertise. We set a bold cost savings goal and work together to achieve it. 
• VIE can perform a cost savings opportunity assessment. We dig deep into all of your spend and uncover unique areas of cost savings.

If you are interested in learning more, the quickest way to get your questions answered is to      speak with Lisa Miller at lmiller@spendmend.com or directly at 732-319-5700