Blue.Point's Approach to Non-Labor Expense Reduction
Wednesday April 9, 2025

By: Anne Marie Orlando, RN, RCIS, CVAHP
- Non-Labor Costs Are a Major Expense – In most healthcare organizations, non-labor expenses (e.g., supplies, equipment, pharmaceuticals) can account for as much as 30-40%of the total budget. Reducing waste and optimizing utilization can significantly impact financial health without affecting staffing levels.
- Cost Savings Without Compromising Care – Thoughtful product utilization ensures that reductions in expenses do not come at the cost of quality or patient outcomes. Evidence-based selection and standardization of products can improve efficiency while maintaining or enhancing care quality.
- Data-Driven Decisions Matter – Leveraging utilization data helps identify variation in product use across departments, uncovering opportunities for standardization, bulk purchasing, and reducing redundant or clinically unnecessary items.
- Engaging Clinicians is Essential – Cost-saving initiatives gain traction when frontline staff understand the "why" behind product selection and have a say in decision-making. Collaborative value analysis teams drive sustainable change.
- The Hidden Costs of Waste & Preference Items – Unused, expired, or low-value items can quietly drain budgets. Reviewing preference items and aligning them with clinical effectiveness can lead to significant savings.
- Supply Chain Efficiency Leads to Financial Stability – Efficient procurement and inventory management prevent overstocking and emergency purchases, which often come with premium pricing.
- Small Changes, Big Impact – Even incremental shifts in product selection, standardization, and waste reduction can compound into substantial cost savings over time.
Below, you will see the Top 10 projects currently realizing savings for Blue.Point customers.
Want to learn more about Blue.Point? Contact us today for a free product demo or for more information contact Jennifer Doty by email jdoty@bluepointscs.com or call 978-747-1529.