With rising operational costs driven by inflation, labor shortages, and global volatile tariffs on healthcare supplies and equipment, psychiatric hospitals and community behavioral health providers are under increasing pressure to control spending without compromising care. Fortunately, targeted cost-saving strategies — when aligned with accreditation standards from TJC, DNV, CIHQ, ACHC, CARF, Social Current (COA) and CMS and  state agencies’ regulations — can improve financial performance and patient outcomes.

Cost-Saving Strategies – The Role of Accreditation & Regulatory Compliance Amid Volatile Healthcare Supply Costs

Accreditation and regulation do not just ensure compliance — they also drive operational efficiency, standardization, and risk reduction, all of which help cut costs and support long-term organization sustainability.

1) Optimize Supply Chain Management

Volatile tariff increases on imported medical supplies mean behavioral health organizations must rethink how they procure critical items.

• Diversify Suppliers: Reduce dependency on tariff-affected imports by sourcing from domestic or alternative international vendors.
• Bulk Purchasing & Group Buying: Join purchasing coalitions or GPOs to leverage economies of scale.
• Lean Inventory Practices: Implement just-in-time or automated inventory systems to avoid overstock and reduce waste.

Accreditation Benefit: Accrediting bodies such as TJC, ACHC, and DNV require structured procurement and inventory policies that can reduce product loss, prevent shortages, and ensure appropriate use of resources.

2) Leverage Telehealth Services

Expanding telebehavioral health services can reduce costs related to physical infrastructure, utilities, and staffing.

• Remote Psychiatric Evaluations & Therapy: Reduce physical space needs and expand reach.
• Virtual Group Sessions: Maximize clinician productivity while improving patient access.

Accreditation & Regulatory Benefit: Accrediting bodies like TJC, CARF, COA, and ACHC now include stand-alone telehealth standards that guide efficient, compliant implementation — protecting billing integrity while reducing unnecessary facility-based expenses. Several CMS Behavioral Health flexibilities are now permanent including no geographic or originating site restrictions, audio-only telehealth services, expanded provider eligibility and FQHCs and Rural Health clinics are permanently authorized to serve as distant site providers for behavioral health and mental health telehealth services.

3) Implement Energy Efficiency Measures

Utility costs in 24/7 psychiatric settings can be high. Reducing energy usage translates directly into savings.

• Upgrade HVAC, Lighting, and Equipment: Use energy-efficient systems.
• Smart Building Controls: Automate lighting, climate control, and equipment shutdowns.
• Engage Staff: Promote energy-saving behaviors.

Accreditation Benefit: Accreditation surveys (e.g., DNV, CIHQ, TJC, and ACHC) evaluate environmental safety and utility systems management. Meeting these requirements often encourages proactive, energy-saving maintenance and modernization.

4) Enhance Workforce Efficiency

Staffing represents the largest operational cost. Strategic investments in workforce efficiency reduce unnecessary expenses and improve patient care continuity.

• Cross-Train Staff: Create flexible teams capable of handling multiple roles.
• Dynamic Scheduling: Use acuity-based and census-driven staffing models.
• Invest in Retention: Reduce costly turnover by improving engagement and satisfaction.

Accreditation Benefit: All accreditors and CMS require staffing to be competency-based and aligned with patient needs. Implementing standardized role descriptions, training, and float pool models ensures compliance while boosting cost-effective operations.

5) Utilize Data Analytics

Data-driven operations identify cost drivers and improvement opportunities.

• Predictive Analytics: Forecast patient needs to adjust staffing and service mix.
• Track Performance Metrics: Reduce variability and inefficiencies in clinical workflows.
• Use Dashboards for Real-Time Monitoring: Detect early signs of waste or underutilization.

Accreditation Benefit: QAPI and performance improvement standards across all accrediting bodies require data use for risk identification and performance benchmarking, which naturally supports cost containment.

6) Review and Renegotiate Contracts

Organizations should proactively evaluate vendor and service contracts to ensure value.

• Benchmarking: Compare rates and terms to current market pricing.
• Vendor Performance Reviews: Hold vendors accountable through defined written agreements.
• Renegotiation: Leverage accreditation-aligned quality metrics to drive better terms.

Accreditation Benefit: Bodies such as TJC and CMS require contract performance evaluation for contracted clinical services. This often uncovers opportunities to improve both quality and cost-effectiveness.

7) Seek Grant and Supplemental Funding

Diversify revenue sources to offset rising costs and invest in strategic priorities.

• Private Grants: Identify and pursue private funds initiatives related to telehealth, staffing, mental health innovation, and infrastructure.
• Private Partnerships: Explore collaborations with health foundations, managed care plans, or educational institutions.

Accreditation Benefit: Accrediting bodies such as CARF and COA encourage partnership development and sustainability planning. Demonstrating accredited status often improves an organization’s competitiveness in grant applications.

Conclusion: Accreditation and Compliance are Cost-Savings Strategies

While many see accreditation and regulatory conformance primarily as a compliance requirement, it can serve as a strategic asset for cost reduction. Accrediting and regulatory bodies require organizations to operate with structured processes, data-informed decisions, efficient staffing models, and streamlined operations — all of which support financial stewardship in today’s complex economic environment.

Barrins & Associates

At Barrins & Associates, we help psychiatric hospitals and behavioral health organizations leverage accreditation and regulatory conformity not just for compliance, but for financial sustainability and performance improvement.

Ready to Reduce Costs While Improving Care?

Let Barrins & Associates show you how to align your operations, staffing, and infrastructure strategies with accreditation-driven cost efficiencies. Contact us today for a tailored consultation — and start seeing results that go beyond survey readiness.

Barrins & Associates – “Invest in Compliance for Long-Term Cost Savings.”