Get MEDICAL CARE AND COST CONTAINMENT COMMITTEE REVIEW ... - State Tn

Cost containment is a process of judiciously reducing costs in a business or limiting them to a constant level. When performed properly, cost containment can ensure or increase profitability without undue difficulty created for those performing the job.

Cost containment in healthcare is all about finding ways to save money and reduce spending without sacrificing superior patient experiences.

"Each individual and corporate entity within a predominantly private entrepreneurial system seeks to manipulate financial incentives to its own advantage, without regard to its impact on the system as a whole. Hence, cost containment remains an elusive goal."

Effective cost containment strategies can lower a company's healthcare spending and also increase the quality of care, expand access to healthcare services, and improve provider integrity. One of the more popular cost containment strategies is reference-based pricing.

What is cost containment in healthcare? Cost containment in healthcare is a comprehensive strategy that integrates efforts to reduce an organization's existing costs and control current and future costs. Effective cost containment moves beyond more traditional, one-off cost-cutting initiatives.

Typical cost containment examples include alternative reimbursement models, changing corporate cultural norms, and accessing care providers outside traditional insurance networks. Given such a variety of options, employers often use more than one tactic for optimal savings.

Profit Center: - Responsible for revenue generation and const containment. Responsible for cost containment,not responsible for revenue generation.