July 31, 2014 by Arezu Sarvestani
Cleveland Clinic CEO Toby Cosgrove says hospital systems around the U.S. are looking for ways to reduce their costs by 15-20% over the next 5 years.
MASSDEVICE ON CALL — Hospital systems are looking to make major cuts to their spending as Medicare dollars become more scarce, and that means shrinking budgets for purchasing medical devices and other products.
Cleveland Clinic CEO Toby Cosgrove told CNBC that he cut $100 million from his purchasing budget and that he’s still looking for “efficiencies” everywhere, from supplies to personnel. He aims to reduce the hospital’s costs by 15-20% over the next 5 years, and he says hospitals around the country are doing the same.
“This is going to affect the entire industry of healthcare, manufacturers and suppliers, etcetera,” Cosgrove said. “At the end of the day we’re not going to get where we need to get without changing the way we deliver care and changing the population we look at. People need to have responsibility for their personal health.”