Question

How are cost sharing and cost saving re;ated and how do they differ.

Answer 1

Cost sharing: It is nothing but sharing certain costs from patients pocket for treatments which are not covered by medical insurance. For instance, at the time of discharge, insurance team has to decide to patient that some amount need to be collected(co-payment). Insurance pacakge includes consumables , disposables and various services coming under insurance pacakage. Those costs consists of all kind of services and before mentioned materials. The Package cost includes all kind of Services and charges will be sharing prescribed ratio basis.

Cost savings: In general, every organisations planning to save the costs of services. Indirect savings arise from improvements in efficiency and a reduction in wasted time. For instance, medical equipment consumed at one time to multiple patients instead of single patient. It consists of equipment usage, electricity, manpower(nurses,technical team/non-technical). It gains profit margin to Management.