Verified Document

Three Ways To Cut Health Care Costs Right Now A2 Coursework

Health Care Costs Ways to Cut Them Right Now

In the face of high health care costs, the health care industry is striving to reduce costs by addressing chronic, expensive drains on health care dollars. Researchers have offered numerous steps that can be taken to significantly reduce costs. Furthermore, while some cost-cutting programs are considered ineffective window-dressing, major health care providers have systematically and pointedly taken successful steps to reduce costs while rewarding compliance with those steps.

Three of the Ten Ways to Cut Health Care Costs Right Now, Described by Arnst

While Catherine Arnst describes 10 ways to cut health care costs right now and Kaiser Permanente addresses all 10 of those ways, 3 of the ways Kaiser Permanente cuts health care costs leap to mind: cracking down on fraud and abuse; developing a healthy workforce; and stopping infections in hospitals. "Fraud and abuse" in health care includes but is not limited to phony medical claims, kickbacks to health care providers and concocted payment schemes (Arnst, 2009). According to Arnst, due to law enforcement crackdown in other areas, organized crime has entered the lucrative business of health care fraud and abuse, with a low estimated yearly cost of 3 -- 10% of all health care spending for fraudulent billing alone (Arnst, 2009). Consequently, health care institutions are now focusing on detecting and eliminating as much fraud and abuse as possible. "Developing a Healthy Workforce" in Health Care involves a health care institution's offer of wellness services to employees, based on the theory that "prevention pays" (Arnst, 2009). In support of this theory, Arnst quotes Dr. Fikry W. Isaac, Johnson & Johnson's executive director of global health services, who states: "Seventy percent of health-care costs could be prevented through lifestyle modification" (Arnst, 2009). Despite the wisdom and savings inherent in overall wellness services, prevention is too often overlooked (Lavizzo-Mourey, 2009, p. 1). In an effort to address that neglect, some companies offer services such as smoking cessation classes, online weight loss and stress management tools and fitness centers to their employees (Arnst, 2009). In addition, some health care institutions couple wellness services with incentives such as reduced health insurance premiums to encourage...

Finally, "stopping infections in hospitals" entails establishing and enforcing protocols to reduce the contamination that infects 1.7 million hospital patients per year and kills 99,000 of those patients, reportedly adding $30 billion per year to America's health care costs (Arnst, 2009). Adopting a "zero tolerance" policy toward hospital-induced infections, developing and enforcing common-sense checklists, and the Keystone Project aimed at eliminating catheter-related infections are all methods being employed by health care institutions to severely reduce/eliminate contamination and related health care costs (Arnst, 2009). In addition, Venessa Wong's slide show highlights Mission Memorial Hospital's screening and isolation of patient's with staph infections, reducing the hospital's staph-related expenses $925,000 in 2008 (Wong, 2009). Clearly, at least some health care institutions are decisively cracking down on fraud and abuse, developing a healthy workforce and curbing/stopping infections in hospitals, with significant health care cost reductions.
The Ways in Which Kaiser Permanente is Actively Addressing those Three Ways to Cut Costs in Terms of Improving Their Health Care Delivery

Kaiser Permanente is one major health care institution that is deliberately cracking down on fraud and abuse, developing a healthy workforce and curbing/stopping infections in hospitals. Kaiser Permanente maintains that "fraud occurs when someone misrepresents the truth to get a benefit or advantage" and that "abuse is the wrongful or improper use of Kaiser Permanente or government resources" (Kaiser Permanente, 2012). Kaiser Permanente requires four steps of its employees to combat fraud and waste: do not participate in those activities and if you suspect that someone else is engaging in fraud or abuse, report it to a manager/supervisor, steward, union rep, compliance officer or Human Resources rep or make an anonymous report by calling 1- [HIDDEN] ; follow the institutions code of conduct, as well as all policies, laws and regulations; avoid conflicts and the appearance of conflicts between your interests and those of Kaiser, and report any possible conflicts to a manager or compliance officer; carefully any documents you are required to sign, ensuring that the information is correct and complete,…

Sources used in this document:
Works Cited

Arnst, C. (2009, November 12). 10 ways to cut health-care costs right now. Retrieved on July 23, 2012 from www.businessweek.com Web site: http://www.businessweek.com/magazine/content/09_47/b4156034717852.htm

Coalition of Kaiser Permanente Unions. (2012). Healthy Workforce | Labor Management Partnership. Retrieved on July 23, 2012 from www.lmpartnership.org Web site: http://www.lmpartnership.org/healthy-workforce

Kaiser Permanente. (2008). Healthy workforce gateway. Retrieved on July 23, 2012 from epf.kp.org Web site: https://epf.kp.org/wps/portal/healthyworkforce/selectregion-WCM_GLOBAL_CONTEXT=

Kaiser Permanente. (2011, March 9). New research unveils high support for programs to reduce infections in hospitals. Retrieved on July 23, 2012 from xnet.kp.org Web site: http://xnet.kp.org/newscenter/pressreleases/nat/2011/030911sepsis.html
Kaiser Permanente. (2012, May 25). Compliance Fact Sheet. Retrieved on July 23, 2012 from xnet.kp.org Web site: http://xnet.kp.org/compliance/students/FWAAwarenessFactSheet.pdf
Wong, V. (2009). How hospitals can slash costs. Retrieved on July 23, 2012 from Images.businessweek.com Web site: http://images.businessweek.com/ss/09/11/1112_how_hospitals_can_slash_costs/index.htm
Cite this Document:
Copy Bibliography Citation

Related Documents

Cut Health-Care Costs Right Now
Words: 983 Length: 3 Document Type: A2 Coursework

The third attempt in reducing the cost of healthcare service revolves around coordination of health services by the use of family doctors. This would enable patients to avoid the risk of double prescription of drugs. Patients should focus on directives from one doctor in the process of seeking medical attention. This would reduce the cost of obtaining healthcare services by the patients thus lowering down the total cost within the

Causes and Implications of Rising Health Care Costs on Businesses
Words: 3688 Length: 13 Document Type: Term Paper

Higher Health Care Costs on Businesses Without doubt, America faces some heavy challenges in the forthcoming years. First, still reeling from the terrorist attacks of September 11, 2001, the United States struggles to find the medium ground between protecting its border and sacrificing its people's civil liberties and stepping on other countries' sovereignty and freedom. Most recently, we've faced a large budget crisis, with huge line items such as Social

Healthcare Strategy
Words: 1289 Length: 4 Document Type: Other

Health Care A target market is defined as recognizable segments that make up the market, and the target market consists of the groups the organization wants to focus on (Swayne, Duncan & Ginter, 2008). There are a number of ways that a target market can be understood. The main breakdowns in health care are geography, demographics, payer and specialty (Gandolf, 2010). Geography is perhaps the simplest one. It reflects the service radius

Health Insurance Costs Perhaps It Is Simply
Words: 3597 Length: 14 Document Type: Term Paper

Health Insurance Costs Perhaps it is simply that we all need a few good villains in our life, and with the Cold War firmly over we must look closer to home to find our bad guys. Or perhaps it is simply that there is a great deal of villainy in society, that in fact society is nothing more than an evolutionary process of ever-more sophisticated forms of villainy. Either explanation might do

Healthcare Reform Review of Literature:
Words: 6070 Length: 20 Document Type: Literature Review

(Menzel, 1990, p. 3) Fisher, Berwick, & Davis alude to the idea of integration in health care, with providers linking as well as creating networks of electronic medical records and other cost improvement tactics. The United States and other nations over the last twenty or so years, have begun a sweeping change in health care delivery, regarding the manner in which health information is input, stored and accessed. Computer use

Health Care and Health
Words: 1680 Length: 5 Document Type: Essay

Health Economics In 2012, there were nearly 800 million doses of opioids prescribed in Ohio alone -- a figure which equates to roughly 70 pills for every individual in the state. The prescriptions were for 20% of the state's populace (Semuels, 2017). What's more is that these prescriptions are not helping people; on the contrary, as Katz (2017) reports, "drug overdoses are now the leading cause of death among Americans under

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now