A hospital department manager can have good technical skills, good evaluation skills, show authority and gain the respect and confidence of his staff, be a good communicator, handle crises well, maintain excellent quality standards, and enhance productivity but will continue to be a strong asset to the hospital only if he manages costs effectively and promotes continuous improvement.
Hospital departments including nursing, diagnostic, and ancillary services cannot make a profit! But they can help the hospital's profits by controlling and reducing costs in their department.
Numerous studies have shown that most hospitals do not do a good job of controlling costs. For example, Hospitalist Christopher Kim, MD, MBA has concluded that “up to 40% of all labor time spent in hospitals is waste”.
CostFlex Systems attacked this critical management problem by inventing a monitoring report that will let the manager “see” the labor waste in his department and allow him to follow it up and down on a month-by-month basis. If the manager finds a way to reduce and control this wasted labor cost, the report will show and quantify this accomplishment.