IHI.org - A resource from the Institute for Healthcare Improvement
Header Image






Manage Time:
Set Up Timing to Use Discounts

The planning and timing of many activities can be coordinated to take advantage of savings and discounts that are available. Designing a process to take advantage of available discounts can save money and reduce operating costs. An organization must have a system in place to take advantage of such opportunities. For example, taking advantage of available discounts on invoices offered by suppliers for paying bills within 10 days of the invoice date requires a system that can process an invoice and cut a check within the discount period. Other opportunities to apply this change concept require a process that is flexible in design, and knowledge of the opportunity to take advantage of the timing discount.




Examples of Tests of this Change

Large groups in an organization or industry can be set up to take advantage of volume discounts. Thirty pharmacies in a hospital system coordinated to their purchase drugs together. Together they were large enough to negotiate directly with the drug manufacturers for timing and volume discounts. This coordination in timing of purchases reduced their cost of goods by 15 percent.


What others are saying
Post your comments about this item.
View All Comments
Post Your Comments