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April 20, 2018 Article 5 min read
As companies look to disrupt the healthcare market, regional systems must look at costs in order to survive and thrive. Consider these strategies to target the right costs. Read more at Becker's Hospital CFO Report.

Staff memebers attending a meeting on cost strategies

The healthcare industry has struggled for years to cut excesses amid the $3.2 trillion spent annually on healthcare, but it’s time to get serious.

Incremental cuts on the order of 5% won’t make a real difference, especially given that so many have fallen well short of even that modest goal. The industry must target transformational cost cutting, on the order of 20% or more over the next five years, or struggle amid the coming dislocation.

The good news is that transformational cost cutting, while maintaining safety, quality and patient satisfaction, can regenerate a health system and empower it with a new cost-conscience mindset that can help it thrive. But from where will these cuts originate?