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Making hospitals healthy: A need to look within – Improving and sustaining financial health through cost efficiency

Making hospitals healthy: A need to look within

The report outlines the key aspects of the journey which a hospital in pursuit of improving and sustaining financial health through cost efficiencies should consider


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Hospitals are facing the pressure not only on revenues, but also on margins and this pressure is only likely to continue if not further strengthen. In this scenario, the ‘need to look within to be more cost efficient’, without compromising on quality and safety, emerges as the most important imperative for the hospitals today.

Attaining cost efficiencies is not a one-time project. It is a continuous learning journey for the hospitals in how to be more cost efficient by being able to persistently and sustainably self-analyse and self-evaluate. For a new hospital being set-up, the report proposes that the journey start from planning of the hospital to be cost efficient – in terms of its design and choices related to capital costs such as medical equipment and their impact on operational costs. For existing operational hospitals, the report highlights three themes to achieve, enable and sustain cost efficiencies.

Across these three themes, the report highlights many initiatives which have delivered results in many other hospital settings and also outlines the high level steps for a hospital to undertake them.

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KPMG (Registered) (a partnership firm with Registration No. BA- 62445) converted into KPMG Assurance and Consulting Services LLP (a Limited Liability partnership firm) with LLP Registration No. AAT-0367 with effect from July 23, 2020.

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