Non Labor

Non labor expenses typically represent the second largest expense category for most healthcare organizations, and the management of these expenses on an annual basis is more critical than ever given the market’s current trend of declining reimbursements. Traditional cost containment efforts can sometimes result in short-term improvements, although it is not uncommon that these improvements prove to be unsustainable due to vendor marketing strategies, new technology introduction and a decentralized management approach to cost containment across the various organizational operating units. Addressing non-labor expenses with a more integrated approach and improved accountability can help you achieve dramatic results that deliver tens – if not hundreds – of millions of dollars in sustainable, annual savings.

Successful non-labor expense reduction in healthcare requires culture change, not just subject-matter expertise – and Novia delivers both. Novia’s boots-on-the-ground approach enables us to immerse ourselves in the organization and change that culture. As a result, our subject-matter experts are able to identify and implement unique opportunities related to not just price reductions, but also improved utilization of supplies and services – and you’re able to sustain the savings over the long-term.

Non Labor Healthcare Cost Savings | Novia Strategies Case Study


Service Offerings

  • Assessment and implementation of non-labor cost reduction opportunities in the following areas:
    • Clinical and non-clinical supplies
    • Physician preference products
    • Pharmacy
    • Laboratory
    • Contracted Services
    • Food, Environmental Services and Facilities
    • Human Resources
  • Strategic optimization of non labor expense management structure
  • Interdisciplinary collaboration with key clinical stakeholders to drive behavior change and implementation of best practices
  • Evidence-based supply and drug utilization optimization
  • Non-traditional revenue enhancement
  • Value analysis process implementation


Client Benefits

Novia’s integrated Non Labor cost-reduction solutions enable clients to extract significant costs from their supply chain and contracted services, and deliver sustainable savings against their bottom line. For clients, this means significant financial and operational improvements:

  • Organization-wide expense reduction across the full spectrum of non labor expenses
  • Culture of change centered on how you spend your non labor dollars
  • Improved pricing and contract terms for supplies and services
  • Evidence-based utilization guidelines to ensure supplies and services appropriately used throughout your organization
  • Enhanced standardization and contract compliance across the non labor expense continuum
  • Tools and processes designed to increase accountability for the implementation and sustainability of non labor expense reductions


Practice Leads

Ready to take the next step? Contact our lead healthcare cost reduction consultants today.

Bill Denton RN, MBA - Novia Strategies, EVP/Principal

Bill Denton RN, MBA

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Tom Fox – Novia Strategies Managing Director

Tom Fox

Managing Director
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