Non-Labor Expense Reduction

Control and reduce non-labor expenses.

As the healthcare industry changes, hospitals must constantly keep an eye on non-labor expenses, which is typically 50 percent of a hospital’s spend. And as margins grow tighter from declining reimbursement, hospitals are seeking to re-balance non-labor costs. Tackling non-labor expenses with a more integrated approach can help you achieve sustainable savings.

Non-labor spend accounts for over 30 percent of healthcare expenses, and controlling these costs is imperative in the ever changing healthcare environment. QHR's Supply Chain services help you to improve overall non-labor spend by understanding variations in resource utilization, inefficiencies in operations, gaps in alignment, and reduce supply cost per case in the OR and procedural areas. This is done with benchmark driven analytical insight, that arms leadership and decision makers with the data needed to drive meaningful change. With our expertise in supply chain operations and data analytics, we will help you to implement lasting improvements, that hard wire results.

How We Help Our Clients

QHR’s non-labor cost-reduction solutions give clients the right tools to improve their bottom line and reduce costs long-term. Combine Clinical and Operational experts, who have deep experience improving operational excellence as former hospital leaders. This combined with leading analytical solutions to help pinpoint the root cause of problem to ensure valuable hospital areas are deployed in the right areas. In partnering with hospitals just like yours, our experience has generated a reduction of approximately 8-12% on total Non-Labor expenses.

Featured Capabilities

  • Utilizing industry leading benchmarking to understand gaps
  • Reducing supply cost variance for similar clinical cases
    • Utilization analysis to standardize procurement and consumption
    • Tools and expertise to drive cost containment
  • Provider expertise in improving high cost service lines (Cardiology, Orthopedics, Operating Room)
  • Analysis to determine cost savings in pharmacy
  • Improve efficiencies in ordering/inventory management
  • Structure implementation to efficiently manage non-labor expenses


Director, Clinical & Operational Performance Improvement
Senior Lean Consultant


Leaning Forward
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Leaning Forward: How Lean Helps Hospitals Drive and Sustain Improvement

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