Cost Reduction Through Improved Clinical Management Cost reductions often require improvements in clinical management because differences in costs are primarily driven by differences in resource use, not differences in the cost per unit of resource. (An organization cannot maxi- mize profits if it overpays for the resources it uses.) In turn, differences in resource use are driven by differences in how clinical plans are designed and executed. Improvements in clinical management require physician coopera- tion and, more typically, physician involvement. Even though many health- care professionals make clinical decisions, physicians in most settings have a primary role in decision making.
Having recognized the importance of physicians in increasing efficiency, managers need to ask whether the interests of the organization and its physicians are aligned. In other words, will changes that benefit the orga- nization also benefit its physicians? If not, physicians cannot be expected to be enthusiastic participants in these activities, especially if the advantages for patients are not clear.
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