3 ways that medical businesses can cut costs

3 ways that medical businesses can cut costs

Cutting costs in the medical sector can be a risky business. You want to save your company money so that it can reinvest in better services and practices, but you don’t want to compromise on the services you already provide. It’s a fine line, so here are some tips to make the process smoother.

#1 Cut the cost of equipment

Medical companies, perhaps more so than any other business, seem to burn through equipment and supplies at an alarming rate. This is due to the uniquely disposable nature of the medical sector. Some equipment can only be used once, meaning that large amounts of supply are discarded after a single use. Costs can add up fast, and even more so when you look to expand into new treatment areas that might require big injections of cash investment.

Supply is an area where you can make savings, though, and these savings are sometimes dramatic. Using a medical suppliers marketplace, you can compare prices on everything from disposable masks to larger, single purchases like a medical diagnostic machine. By comparing prices across different suppliers, you’ll find not just the best value but also the best quality, aftercare, and support for your business. 

#2 Cut business waste

This applies to everyday business tasks that cost money. For example, you might dispense with credit card payments in-house and rely on money transfers instead. These don’t come with fees and deliver cash straight into your bank account. This is only one example, though, and most businesses find that there are lots of areas of waste that can be cut.

Automation is a substitute for hiring additional staff in many areas. Most IT tasks can now be fully automated, and chatbots will even take care of customer queries online. Network maintenance, payroll, and even certain parts of the accounting process can be automated, too, meaning that you don’t have to pay for third-party staff. Business waste will vary between companies, so conduct a careful audit and see where you can make savings. Many of these cuts aren’t just money-savers, either. They’ll save you crucial time that you can reinvest in your patients.

#3 Update your infrastructure 

Too many medical companies use technology that’s well out of date and is costing them money. Legacy phone systems, for example (much used across the industry), are far more expensive to run than modern VoIP systems. Making the switch can save you as much as 80%. The same applies to outdated and costly IT systems, as well as office equipment like printers and scanners. Updating the business all at once might seem like a costly endeavor, but it’s a one-off expense that promises savings.

The same applies to energy-saving interventions. Simply moving through a building and replacing older lightbulbs with energy-saving equivalents, using cistern bags to cut wastewater and switching to a green energy tariff will save your business money. These savings might not necessarily be huge, but they’ll make a cumulative difference.  

Paul Petersen