Dynamic’s Cost Saving Strategy

Dynamic’s Cost Saving Strategy

Controlling the operational costs in big organizations is challenging because of the workload and the population of employees present in the firm. The dynamic hospital has 100 physicians and several other workers that increases the costs needed to keep the organization running. For the adoption of the new monolithic Electronic Health Record (EMR), the hospital has to make sacrifices. The organization has revenue generated from the outpatient orthopedic department and the inpatient care services. Together with loans from other institutions, the Dynamic hospital will manage to raise the $1.5 million needed to adopt the new system.

The operational costs of an organization include software maintenance, hardware maintenance, physician salary, support salaries and the traveling allowances (Wager et al., 2017). Dynamic can reduce the operational costs by cutting short traveling and training costs. Adoption of the new EMR system will involve installation of new machinery. Installation of the new software and hardware will minimize the maintenance costs, and it will cover the extra $100K needed for maintenance of the new system. The bundled payment method introduced by the private payers will eventually generate extra capital to cut short the physician costs. According to the new system, physicians will be paid a fixed amount of money for all services provided.

Health information technology is a strategy that is used to generate new revenue in the hospitals by decreasing the number service providers and providing new approaches to healthcare for patients (Goldzweig et al., 2014). Creation of a website where the patients will download material will generate new revenue for the hospital. Research conducted in the United States indicates that many healthcare facilities have adopted the ‘app method’ of generating extra income in the organization. The income generated will be used to cover the implementation costs of the EMR system in the institution. Electronic health records are beneficial to organizations because they reduce the number of staff needed to control the manual systems in the hospital. Services are also done faster through /the use of EHRs, thus, investors will be attracted by the quality of services provided through the use of EMR in Dynamic hospital.


Wager, K. A., Lee, F. W., & Glaser, J. P. (2017). Health care information systems: a practical approach for health care management. John Wiley & Sons.

Goldzweig, C. L., Towfigh, A., Maglione, M., & Shekelle, P. G. (2014). Costs and benefits of health information technology: new trends from the literature. Health affairs28(2), w282-w293.

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