The reality is that patients and families do not care how much you spend. They want results: Zero pain if possible, affordable services, prompt response to needs, ability to determine level of service, and so forth. If you spend 12% of Net Patient Revenue on medications, does it make the patient happier? They don’t care if you spend 12% or 4% as long as their pain is at the desired level (gone or manageable) and they can do the things they want to do. Spending more does not translate into better care; it translates into waste.
High cost is not an indicator of quality. There is no direct relationship between cost and quality. Quality has a cost, but it is not excessive in financial terms. The real cost to achieve quality is the cost of effort in establishing and maintaining high expectations. High costs often just equate to sheer waste.
This does not mean we should not spend more or increase resources in areas where we feel it is justified and will further our world-class goals. However, we must be wise and pick our areas well.
Spending more does not translate into better care…
– by Andrew Reed