Cost Containment

Cost containment involves strategies and actions aimed at controlling expenses within an organization to prevent unnecessary spending and improve financial efficiency. It includes analyzing costs, setting budgets, and finding ways to reduce waste without compromising quality or service. In healthcare, for example, it might mean negotiating better prices for supplies or reducing unnecessary tests. Overall, cost containment helps organizations operate more sustainably by balancing expenditures with available resources, ensuring long-term financial health while maintaining standard levels of service or production.