With new challenges facing the health sector around the world, including the Covid-19 pandemic and subsequent surgery backlogs across the industry, it’s never been a better time to explore your money outputs and bring costs down.
Taking the time to save money will ultimately boost your organization’s profits, which can then be invested in new research and facilities to further support patients., Putting money-saving ideas into action is a good idea for managers of small and large healthcare companies, especially in the health industry where costs can be high.
Read on to find out our top tips for money-saving when you have a career in the health industry.
Investing In New Software
As a manager of a health company, it’s impossible to have eyes everywhere. You’re responsible for monitoring productivity, absenteeism and recruitment – to name just a few tasks. Investing in business management software will support you in your responsibilities and give you hours back to put to better use.
For example, you could use management software to track staff hours, organize payroll automatically and identify staff illness trends. Using such programs will alleviate the pressures on you as a manager, freeing up time to explore other money-saving opportunities and identify income generating activities.
The other advantage to this software is that it automates some tasks – notably tasks traditionally undertaken by an HR team, meaning you’ll need to hire less staff which will save you money.
While buying business management software will require an immediate injection of cash, it’ll be worth it in the long run. This investment will save you money.
Creating a Procurement Team
Procurement is the money-saving method through which high-quality items are secured at the cheapest possible price. This process is a brilliant money-saving tip for managers in the health industry.
From pens to paper to pipettes, there are lots of opportunities to cut back on costs. You probably aren’t currently getting the best price on everything you buy, and a dedicated team could help you in this venture to long-term savings.
For example, in 2011 the UK government saved £1 billion by engaging in procurement practices.
Hiring a procurement team, or outsourcing this, is costly at first. However, it will save you vast amounts of money in the long run – increasing profits. With a specialist team hired to source and barter for better prices on products, you’ll wonder why you didn’t properly engage with procurement before.
Identifying Energy-Saving Opportunities
Running a health company is important work and often requires a lot of electricity to sustain machines and equipment.
Unlike other industries, it’s not possible to simply switch appliances off. A lot of the equipment you use will most likely need to stay turned on permanently, meaning there aren’t any cost-saving measures available.
However, you can take the opportunity to only buy the most energy-efficient products available. Investing in low-energy products, whether medical machinery or the staff kitchen fridge, will save money.
The potential for savings is huge. For example, consider a washing machine that you use for washing uniforms. The cost of running a washing machine varies enormously, from about £47 to more than £175. The energy rating of each appliance will affect your spending, and so always seek to secure the best. The planet and your profits will thank you.
Explore Outsourcing
Outsourcing is becoming a viable option for managers seeking to save money. Getting a third-party company onboard to fulfil some aspects of your business can save you money by reducing staffing, training, building, technology, equipment and uniform costs.
Outsourcing such processes as mRNA LNP formulation will mean you no longer need to do expensive tasks in-house. Forming strategic alliances with other companies is guaranteed to save money, as well as boost efficiency in services and improve the end product for the customer.
Encourage Home Working
Working from home may not be appropriate for all of your staff, but you should take advantage of this new way of working. Encourage behind-the-scenes office staff to relocate from your office to their living room.
If a large proportion of your staff are working from home, you no longer need to provide an office space for them – reducing building, equipment – and even coffee costs.
Superior Customer Service
Making good customer service central to everything you do won’t save you money, but it is proven to generate more income. Happy customers are repeat customers, spending more money with you than if they’re frustrated with your product or service.
The Bottom Line
Spending lots of time exploring money-saving opportunities for your health business can seem counterintuitive but putting the ideas above into action can lead to immediate cost-saving results. Additional profits will allow you to invest in growing your company.
By encouraging home working, securing strong relationships with external companies and ramping up your procurement efforts, you will save a lot of money.
