HBR. ORG they are unable to link cost to process improvements or outcomes, preventing them from making systemic and sustainable cost reductions. Instead, providers (and payors) turn to simplistic actions such as across-the-board cuts in expensive services, sta compensation, and head count. But imposing arbitrary spending limits on discrete components of care, or on specic line-item expense categories, achieves only marginal savings that often lead to higher total systems costs and poorer outcomes.
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