Nationally, reimbursement for most health systems has been and continues to be in decline. And that decline, coupled with declines in patient volume, is understandably the source of much anxiety in the C-Suite. Many systems are responding to reimbursement declines with more and more draconian cost cutting measures. However, the reality is that more and more systems are discovering — often in a very painful way — that even if their cost structure matches the highest benchmark levels of performance, this level of performance will not be enough to close the gap.

The key is to manage margin, not cost.  

Download PDF: Cutting Costs May Not Be the Answer