Healthcare Costs Reduction Recommendations

Electronic health records help reduce overall health costs while at the same time they improve the quality of health care services. This is because electronic record-keeping equipment replaces manual labor, thus reducing labor costs.

Another electronic method that could be employed to lower costs is e-prescribing. This ensures customer satisfaction and improves accuracy, thus reducing any chances of errors that could increase costs.

Many of the expenses that increase healthcare costs are associated with institutional health care in the hospitals. This is mainly because administration costs are reduced. This strategy helps to streamline the payment process while reducing overcrowding hence speeding of services. This also acts as a remedy since the use of emergency rooms for routine medical care for the poor is reduced. Instead of the poor persons feeling emergency rooms due to lack of money, they can access services from home, thus reducing unpaid bills.

In most countries, health care cost is increased by the fact that expensive instruments used for surgery are disposed of after one use to avoid any infections or contamination of diseases. However, with the improved technology, there are ways that these instruments can be cleaned and sterilized, making them safe to use again. This will save on costs that could have been incurred to purchase new equipment (Shi & Singh, 2010).

Private insurance companies should reduce the cost of premiums required to be paid by patients. This will enable to ensure that hospital bills are paid on time since many of the patients will take insurance covers, thus reducing losses incurred due to unpaid services. Malpractices by profit-minded doctors should also be eliminated. (Nedde, 2008). Many doctors owning private clinics tend to provide services mainly with a profit motive, thus making health care costs be very high.

When doctors become certain that a patient will never recover, they can be authorized to grant a merciful death to the patient. Merciful death is totally different from mercy-killing, which many people do not agree to. Whereas mercy killing might only be to the benefit of the hospital, merciful death benefits the patient, too, as it is authorized by a proxy of the patient (Nedde, 2008). This greatly saves on health care costs since each patient granted a merciful death reduces a lot of health care costs, arguing from the point of view that he would have still died anyway.


Davis, K. et al. (1990). Health care cost containment. Baltimore: Johns Hopkins University Press.

Nedde, E. M. (2008). Health care cost containment. Washington, D.C: International Monetary Fund, Western Hemisphere Dept.

Shi, L. A. & Singh, D. (2010). Essentials of the U.S. health care system. Sudbury, Mass: Jones and Bartlett Publishers.