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 How CQO Can Help Healthcare Organizations Save Money and Improve Patient Care

How CQO Can Help Healthcare Organizations Save Money and Improve Patient Care

24th Feb 2022

Healthcare organizations are facing unprecedented challenges, including rising costs, increased utilization, and the COVID-19 pandemic. To succeed in this environment, organizations must find ways to deliver high-quality care at a cost that is affordable to patients.

The Association for Healthcare Resource & Materials Management's (AHRMM) Cost, Quality and Outcomes (CQO) Movement offers a solution to these issues. CQO is an approach that examines the relationship between cost, quality, and patient outcomes. Rather than looking at each piece of the puzzle as a stand-alone entity, CQO managers determine how the components work together to optimize patient outcomes.

Here are some of the benefits of the CQO Movement:

  • More informed decision-making: CQO provides managers with a more holistic view of the healthcare system, which can lead to more informed decision-making about resource allocation and purchasing.
  • Improved quality of care: When managers consider quality and outcomes in addition to cost, they can make choices that lead to better patient care. For example, they may choose to purchase higher-quality supplies that are more likely to produce a successful outcome, even if they are more expensive.
  • Reduced costs: By considering all aspects of the healthcare system, CQO managers can identify and eliminate waste and inefficiency. This can lead to significant cost savings in the long run.

To implement CQO successfully, it is important to have buy-in from all stakeholders, including clinicians, supply chain managers, and administrators. It is also important to have a system in place for collecting and analyzing data on cost, quality, and outcomes.

Here are some tips for implementing CQO in your organization:

  • Start by building a team: Assemble a team of stakeholders who are committed to CQO. This team should include representatives from different departments, such as supply chain, clinical care, and finance.
  • Develop a plan: Once you have a team in place, develop a plan for implementing CQO. This plan should include goals, objectives, and timelines.
  • Collect data: CQO success depends on having access to accurate data. Collect data on cost, quality, and outcomes for the services and procedures that you provide.
  • Analyze the data: Once you have collected data, analyze it to identify areas where you can improve. This may involve looking at trends over time or comparing your data to benchmarks from other organizations.
  • Implement changes: Once you have identified areas for improvement, implement changes to your processes and systems. Be sure to monitor the results of your changes to make sure that they are having the desired effect.

The CQO Movement is a promising approach for helping healthcare organizations succeed in today's challenging environment. By implementing CQO, organizations can improve the quality of care they provide while reducing costs and improving efficiency.

Contact us today to learn more about how we can help you achieve your healthcare supply chain goals.

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