A group of nurse managers is discussing cost effectiveness with hospital administrators. Which of the following statements indicates a strategy for cost effectiveness?
Explanation & Rationale
Rationale: A. "Preventing readmissions will decrease overutilization of services.": Preventing avoidable hospital readmissions reduces repeated use of costly healthcare resources, improves patient outcomes, and avoids financial penalties tied to excessive readmissions. B. "Hiring travel nurses is an effective method of cost containment.": While travel nurses fill staffing gaps, they often come at a higher cost due to agency fees, housing, and incentives. Relying on them long-term is generally not considered cost-effective. C. "Purchasing more expensive items will improve quality health outcomes.": Higher cost does not always translate to better outcomes. Cost-effectiveness involves achieving the best results at the lowest possible cost, not simply spending more on supplies or equipment. D. "Planning a 10-year budget will ensure cost-effective care.": Long-term planning is helpful, but health care demands and costs change rapidly. Effective cost management requires regular review and adjustment, not just extended projections.