Cost Cutting Strategies
Cost-Saving Tricks of the Trade—Cheryl A. Walker, MSN, MSBA, FNP-C—Dallas Regional Nurse Consultant
The continual rising cost of health care is a major concern and challenge to Job Corps centers, making cost containment a top priority. As a result of this challenge, Region 4 dedicated two Health and Wellness Manager (HWM) monthly calls to assist them in brainstorming cost saving strategies. This article summarizes the suggestions generated during these calls.
The H&W staff must be proactive and assertive in seeking alternative methods of assistance. Diane Ortega, HWM at the Albuquerque JCC, and Ron Korth, Health Administrator at the Clearfield JCC, presented the following cost-saving strategies:
Establish partnerships with local, state and regional programs.
- Participate in the state health Vaccine for Children (VFC) Program, which provides free immunizations for 0-18 year olds.
- Explore your state’s tuberculosis (TB) program. This program may include testing, radiographic services, medications, and follow-up case management. Visit CDCs Division of Tuberculosis Elimination for a listing of state TB control offices.
- Contract with state or local family planning programs. These programs may offer free or discounted oral or injectable contraceptives, medications, laboratory testing, cervical cancer screening (Pap smear testing), and supplies.
- Explore local hospitals’ indigent federal funded programs and philanthropy services, such as private physicians who offer a sliding fee schedule or low or no-cost services.
- Create interagency agreements with the Veteran Administration (VA) or Department of Defense (DOD). Refer eligible students to the Indian Health Service for medical and oral health services.
- Maximize the state Medicaid program. Note: Services can only be used for ailments that are beyond basic health care.
- Actively negotiate with vendors to accept Medicaid reimbursement rates.
- Utilize resources such as the following:
- United Way services directory
- Health and Human Services Mental Health Information Center, Mental Health Services Locator
- Health Resources Services Administration (HRSA) health center directory
- Substance Abuse Treatment Facility Locator
Participate in the various pharmaceutical assistance programs
- Partnership for Prescription Assistance (PPA) can be accessed online or at 1-888-4PPA-Now (1-888-477-2669). This program offers a single point of access to more than 275 public and private patient assistance programs, including more that 150 programs offered by pharmaceutical companies.
- NeedyMeds.com is a resource available to assist with the cost of medicine and other health care expenses. This site is an information source, similar to the Yellow Pages of a phone directory.
- The Free Medicine Foundation helps people of all ages obtain free or low cost prescription medications. More information is available online or by calling 1-573-996-3333.
- Pursue interagency contracts with the VA or DOD to purchase medications. Savings can be up to 100% less than wholesale prices; however, Perry Point prices may be less, so it is wise to compare prices.
Additional cost containment tips and strategies
On a follow-up call, the Region 4 HWMs and regional health consultants generated the following additional suggestions:
- Keep a tally of how much money is saved by taking advantage of these programs.
- Be assertive in negotiating a price, even with a retailer such as Walmart. For the most part, companies will not automatically offer a discount if not asked.
- Form relationships with your suppliers, e.g., invite a representative from VFC to your center to discuss the program and your center’s needs.
- Be cautious of companies that offer a discount but mark-up the original cost.
Forming partnerships and finding assistance programs requires time, but it is time well spent. These practices can save your health and wellness center quite a bit of money, which can, in turn, be spent on prevention, education, and other worthwhile areas.
Try to sit down uninterrupted for just a half hour this week and follow-up on some of these suggestions or brainstorm some ways your center can cut costs. If your center has an innovative cost-cutting strategy, e-mail us so that we can help spread the word.