Cost Containment

cost containment

Armor provides a high standard of quality health services to our patients. At the same time, we effectively control costs for our clients. We recognize that frequent and open communication is the foundation for a smooth-running operation and the key to controlling and reducing costs. We meet frequently with our clients to identify opportunities to enhance services and reduce costs. We also provide an annual in-depth review in which we present a comprehensive assessment of the program and highlight opportunities to address cost-related issues.

We work with our clients to monitor prescribing trends, drug costs, formulary make-up, and overall pharmaceutical utilization. We actively manage the formulary and use monthly reports to assist in the analysis of costs and prescribing trends, as well as to identify specific opportunities for cost reduction.

In addition, our Chief Pharmacy Officer consults with staff and providers, and reviews utilization to identify trends or areas of potential concern. We analyze each site’s medication usage to determine appropriate levels of stock vs. patient-specific pharmaceuticals, which helps to minimize waste and control costs.

As part of our on-going pharmacy utilization review, we compare practice across all our facilities to ensure up to date knowledge of pharmaceuticals and best practices. Our Chief Pharmacy Officer also conducts regular on-site pharmacy audits which helps to ensure improved site management and compliance.

Since personnel costs account for the majority of a contract, we give a high priority to ensuring that our employees are well-trained with appropriate experience, when they are hired. We focus heavily on retaining productive employees and keeping turnover to the lowest level possible.

At Armor Correctional Health, we emphasize and promote personnel cost control in a wide variety of ways, including:

  • Providing extensive training for HSA’s, Directors of Nursing, Medical Directors and our Regional Management Team on cost related systems, policies and procedures. We focus on cost consciousness as a key component for our on-going training at all staff levels.
  • Encouraging promotion from within as a means of building on the experience of staff who we have trained and who understand our expectations of cost containment
  • Monitoring onsite performance through daily and bi-weekly staffing levels (FTE’s)
  • Conducting monthly calls between corporate, regional and site level management staff to address opportunities for cost reductions
  • Coaching staff in specific ways to achieve economies through performance management and team training
  • Organizing per diem staff pools that are trained and cleared for job assignments

We also structure our staffing plans to maximize on-site services to reduce the need for off-site trips which incur costly security and transportation charges.

On-Site Patient Care
Armor looks for ways to maximize on-site care at all our facilities. Our capacity to do so is determined by the physical plant, availability of willing specialty and ancillary service providers, volume of patients, and cost.

After we have been on-site for a period of time, we work with our clients to analyze utilization patterns to identify what other programs could support organizing a clinic.