Factors Affecting Medical Trends: Deflators

Systemness

Understanding that a well-functioning whole is greater than its disparate parts, care teams are seeking to achieve more by working together. Similarly, hospitals within a large system strive to eliminate redundancies and reinforce common goals through administrative and clinical standardization. Reducing redundancies lowers operating costs and should act as a counterbalance on spending growth next year.

  • When hospitals and doctors work together to cut costs and share in savings, the result is reduced supply costs due to greater standardization and improved ability to negotiate prices. Scottsdale Healthcare saved $24 million by reducing its number of suppliers.
Systemness