Hospital execs fail to reduce costs where needed, report says

A new report suggests health systems are being too conventional in their approaches to cutting costs, which might be why they aren't making much headway.

Labor costs/productivity and the supply chain were the areas 72% of respondents to Kaufman Hall's latest survey said they plan to target when it comes to cutting costs.

But to succeed in a future that's sure to be marked by disruption, it's going to take a new mindset and a willingness to go well beyond the traditional areas of focus, the report said.

That could mean shuttering rural hospitals, reducing clinical variation and attempting to integrate the physician practices they've accumulated in recent years.

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