Current Initiatives in Cost and Management

Abstract

This presentation addresses cost containment initiatives for employers and proposes a management system approach for cost reductions and improved control over the execution of their health care benefit programs. Standard cost management is emphasized as a management tool for more intensive application in hospitals and other large provider organizations. It is a powerful tool for cost reduction and control, prospective costing with reasonable precision, and improving organizational performance. Its application is a process area in which employer and hospital management could work together as proposed by coalitions with potential economic benefits for both.