There are several ways an administrator can cut costs from materials management to revenue cycle review, but one of the least-charted territories has been cutting costs related to clinical decision making.

“Most delivery organizations have had some kind of cost efficiency activity going on for the last decade, but the general focus has been on everything except what physicians do,” says Michael Abrams, co-founder and managing partner of Numerof & Associates. “A lot of cost savings have come from consolidating and negotiating more intensively with suppliers, and from outsourcing — everything but what is going on in the operating room between physicians and patients. I think it’s time to take a look at that.”

Here, Mr. Abrams discusses how administrators can approach cutting cost per case by working with physicians to eliminate waste and promote efficiency.