Introduction
In the United States, many hospitals are responding to cost reduction by employing different strategies which may cause low-quality services with high costs or vice versa. Below are the reasons for and against cost reduction from different stakeholders.
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Stakeholders
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Why not propose project
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Why propose project
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Administrative team
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They are the top-level management in the Organization. They argue that ordering more tests will increase market share by charging higher payments on tests. However, we should reduce cost by improving our processes and treatment or else attract penalty charges that reduce costs of administration as well as the image of the company.
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The administrative team is the main decision maker in the organization and therefore they propose the project since they do not need more employees. They fear it will increase system costs as well as overall cost. This will help them to save for facility expenses.
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Doctors
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Doctors want to order many tests since they will reduce costs by using market incentives. They are paid on tests ordered and not on referrals. Providers order tests they require and therefore reduce costs by using order systems and paying attention to order tests.
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Doctors earn more when they order more tests in order to benefit themselves. This increases healthcare costs (Hall & Doran, 2016). Doctors fear the law and therefore require an unnecessary test to avoid being sued at the same time benefiting from the same. They also bill more so that they also gain money by making requesting unnecessary tests thus raising the costs. This should be stopped since it has no value to the providers instead it benefits doctors.
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Nurses
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Nurses work with Nurse Practitioners and Doctors. They contribute to doctor’s decision whether or not the test is required (MedPac, 2008). They should, therefore, help reduce costs by stopping unnecessary tests especially those needed by physicians and inter-disciplinary team.
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Since nurses influence decision-making, they may back up physicians to order unnecessary tests so that they benefit from the payments. This increases the overall cost o
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Pharmacy
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Tests need to be done because pharmacy will reduce cost by advising on cheap medication using cheaper route or reusing space for asthmatic patients (Probst, Shaffer, & Chan, 2013).
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Pharmaceutical companies and physicians work together to discover new drugs in the market and therefore do unnecessary tests to benefit themselves and thus increasing medication costs.
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Radiology
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The radiology team proposes the project since they will advise on the less expensive tests that are required.
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The radiology team advice physician and therefore they may liaise and order unnecessary tests so that they gain from the payments made thus increasing medication costs (Rovner, 2009).
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Negotiation tactic
I should set up my target based on the firm and identify the main objective that is reducing costs. This will provide me confidence as well as better decisions and clarity on the solutions.
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Negotiation style
I will use an accommodative style where I will offer members a chance to give their views first. This will ensure good relationship among members and it will lay a foundation from which to start negotiation and find information to support the view. Decisions from all members make everyone satisfied. I will give my final solution best on their views.
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Negotiation strategy
I will ask for each member’s interests, prioritize interests in order of importance, highlight common interests and be open to them. This will allow other members rank their priorities too and come up with better options. The agreement will depend on weighing the alternatives and give the best alternative as a solution.
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Conclusion
For stakeholders to reduce costs they involve many suggestions. They have to weigh alternative before choosing the right option, therefore, in this case, Negotiations involving different viewpoints was used to aim at reaching a consensus.
References
Hall, W., & Doran, C. (2016). How Much Can the USA Reduce Health Care Costs by Reducing Smoking? PLoS Med, 13.
MedPac. (2008). Medicare Payment Advisory Commission. USA.
Probst, A. C., Shaffer, V. A., & Chan, R. Y. (2013). The Effects of Defaults in an Electronic Health Record on Laboratory Test Ordering Practices for Pediatric Patients. Health Psychology, 32.
Rovner, J. (2009, July 31). Providing Better Health Care For Less Money. Retrieved from https:/www.npr.org/templates/story/story.php?storyId=106875583
