The Hospital Cost Reduction Strategies from the Managers’ Point of View: A Qualitative Study in Iran

Abstract

Background: Nowadays, hospitals are increasingly facing a shortage of resources, posing a significant challenge. This situation has led to competition, where a successful organization is defined by its ability to cut costs while upholding the quality of services. Objectives: This study aimed to identify cost reduction strategies from the viewpoint of hospital managers in Tehran Province, Iran. Methods: This qualitative study was performed between April and September 2021 in Tehran Province, Iran. The data were collected using in-depth semi-structured interviews with 24 managers of public and private hospitals affiliated with Iran University of Medical Sciences. The participants were selected using purposive sampling. The obtained data were analyzed using the content analysis method in NVivo 10 software. Results: Through analyzing the interviews conducted with aware key participants, cost reduction strategies were presented in 3 themes, 10 categories, and 42 subcategories. Key themes for cost reduction strategies include human resources in 4 categories, management and organization in 4 subcategories, and building equipment and facilities in 2 subcategories. Conclusions: Policymakers, especially hospital managers, can cut costs by adding economic insight into health services and providing a platform to increase efficiency and optimal use of available resources. Formulation of strategies in the field of human resources management, equipment and construction facilities, and organization of hospitals can play a significant role in reducing hospital costs and achieving the goals of the health system.