Healthcare has been one of the hottest topics in politics for the better part of the last decade, but the cost for medical services is something that most people have given up hope on ever changing. Like all matters that concern money, there are several complex aspects to the medical cost problem and solutions aren’t forthcoming.
First, there are several drivers that are pushing the costs up, which include pharmaceuticals, medical equipment, government regulation, and the growing cost of new procedures and techniques. Many health care providers recognize the problem, but lament that there’s nothing they can do on their end to alleviate costs.
This isn’t a completely accurate statement, since there are a few small ways that hospitals, clinics, and laboratories can save at least on some of their expenses. One of the most practical is utilizing the services of medical billing services such as Park Medical Billing to streamline their services.
These companies collect numerous clients and assemble them into what are known as Group Purchasing Organizations (GPO). These organizations provide the members with opportunities for significant cost saving measures, as well as keeping their independence in their operations intact. The Group also protects them from financial risks that would commonly plague their tasks.
Companies and practices participating in GPO plans regularly report receiving discounts by as much as 30% from suppliers. This is because the GPO presents the clients as a bulk deal, and the suppliers are more willing to negotiate a deal with a lesser base cost. According to accounting studies comparing members of the GPO plans and non, the former group can stand to improve their bottom line by as much as 5-10%.
When a business is regularly working with amounts ranging six figures or higher, a 10% increase to profit is a jaw-dropping amount.