Introduction
In order to reduce costs, the organization should focus on the following steps. First of all, it is necessary to decrease fixed and capital costs by at least 20% compared to the level before the outbreak of the COVID-19 pandemic. Salaries for employees and managers are suitable for this category due, for example, to a reduction in working hours and shifts. Secondly, it is vital to mitigate some medical services and goods, such as medicines, modern equipment, supplies, insurance, and other costs (Gapenski, 2016). In the future, it is recommended to reduce operating costs by cutting out physical volumes, as well as minimize overhead costs by revising policies, procedures, and projects over several months.
The Reason for the Cost-Cutting Measures
Undoubtedly, there are several most critical reasons for cost-cutting measures. For example, one of them is the prevailing external circumstances and changes in the state that directly affect the organization’s work processes (Gapenski, 2016). The adaptive response to COVID-19 radically changed citizens’ interests and pushed many firms to reduce “everyday” spending during the pandemic objectively. Moreover, it is evident that cutting costs is one of the main recipes for survival at the time of deterioration of enterprises’ financial and economic situation, which has worsened due to the global financial crisis.
The Valued Contributions
The contribution that employees can make to implementing cost plans in terms of efficiency and productivity is a manifestation of an initiative that would not contradict the company’s policy and culture. Thus, for instance, careful and economical attitude to consumables, efficient use of time and effort, and high-quality performance of duties can significantly mitigate the confluence of disappointing circumstances. Consequently, employees should do everything possible so that the hospital does not “get hit” by COVID-19.
The Appreciation of the Organization
The organization highly appreciates the contribution of medical workers during COVID-19. Primarily, for the work and perseverance, and even for the small current successes. The attitude has changed only for the better because medical workers are “heroes of our time.” Without any doubt, they play a crucial role in the fight against the terrible virus. Accordingly, many healthcare institutions create unique conditions for encouraging work for such hard work in unfavorable conditions.
Reference
Gapenski, L. (2016). Healthcare finance: An introduction to accounting and financial management (6th ed.). Health Administration Press.