This competency assessment assesses the following Outcome(s):
HA425-1: Assess the need for cost containment in healthcare systems given the influence of performance challenges and healthcare reform efforts.
The long-term success and prosperity of an organization is linked to the strategy it pursues over time. You are tasked with researching the history of quality improvement programs to better understand how to approach improving quality in your healthcare organization.
One cost containment strategy in healthcare involves eliminating unnecessary spending, including conducting a dependent eligibility audit and being intentional about what is included in policies. Hospitals also need to optimize their funding arrangement to cut costs. William Edwards Deming is considered the father of quality improvement. These pioneers believed improving quality in healthcare involved identifying gaps while caring for patients. It also requires hospitals to develop and test prototypes for improving health outcomes.