Why Investing in Higher-Quality Doctors Leads to Lower Costs: A Guide for Employers

As a business owner, CEO or CFO, one of your primary responsibilities is managing your organization's resources to drive profitability and financial growth. One area where many organizations, particularly healthcare facilities, can quickly derail their financial goals is by overspending on physician care. When physicians provide ineffective or low-quality care, it can lead to higher costs and worse health outcomes for patients. However, investing in higher-performing physicians can yield significant cost savings while improving patient outcomes. In this blog post, we'll explore why higher quality doctors are lower cost and provide a guide for employers on how to invest in these physicians.

Higher quality doctors improve patient outcomes.

Studies show that there are significant variations in care between physicians. Some doctors may be more knowledgeable, communicative, and skilled than others, leading to superior patient outcomes. When patients receive high-quality care, they have lower chances of experiencing complications or adverse reactions, resulting in lower healthcare costs and better long-term health. For example, a study published in JAMA Network Open found a strong correlation between higher-performing physicians and lower hospitalization rates and healthcare costs, indicating that investing in high-performing doctors could lead to significant savings.

High-performing physicians decrease unnecessary spending.

When patients receive low-quality care, they may be subjected to unnecessary testing, procedures, or medications. These expenses can add up quickly, leading to higher healthcare costs for both patients and healthcare facilities. A Harvard Gazette article highlights that a significant portion of healthcare spending is wasteful, and reducing unnecessary spending can lead to cost savings without negatively impacting care quality. High-performing physicians can identify the right diagnostics and treatments for their patients, avoiding unnecessary expense while achieving better patient outcomes.

Quality care leads to improved patient satisfaction.

Patient satisfaction is an essential component of healthcare delivery and a primary factor in patient loyalty. By investing in higher-performing physicians, healthcare facilities can deliver better care, leading to happier patients who are more likely to return in the future. According to a study published in the Harvard Business Review, patients treated by higher-quality doctors are more likely to recommend their doctors to others, despite charging a higher fee. Additionally, satisfied patients may be more likely to comply with treatments, reducing healthcare costs in the long run.

High-performing physicians require fewer resources.

When physicians deliver high-quality care, they can complete their work more efficiently, saving time and resources. These savings not only help drive down healthcare costs, but they also free up resources to reinvest in other areas of the healthcare facility. For instance, high-performing physicians can reduce wait times for patients, freeing up personnel and facilities for more patients per day.

Quality care reduces malpractice risk and associated costs.

Finally, investing in higher-performing physicians can lead to lower malpractice risks, reducing associated costs. Physicians who provide quality care have fewer malpractice suits and claims than those who provide poor care. By implementing strategies to support quality care, such as standardized protocols, ongoing education, and shared decision-making, healthcare facilities can reduce the likelihood of malpractice claims and payouts.

Conclusion:

Employers have many responsibilities in managing their organization's finances, and one of the most crucial is investing in the right areas that will lead to long-term growth and profitability. Investing in higher-performing physicians is one such area that not only drives better health outcomes but also lowers healthcare costs. As we've seen, higher-quality doctors improve patient outcomes, decrease unnecessary spending, improve patient satisfaction, require fewer resources, and reduce malpractice risk and associated costs. By implementing strategies to invest in the right physicians and support quality care, a business can drive long-term fiscal success while delivering the best possible care for their employees.