When Cheaping Out Backfires: 25 Companies Who Paid a Hefty Price for Cutting Corners
The home health agency I work for was bought out by a hospital system in the next state over. They decided to cut costs by eliminating the position of the person who would obtain authorization from the insurance companies for services and move it all to their centralized auth department in the other state. Only problem was, they had no idea that things worked differently for our state’s medicaid program than it did in their state. They ended up getting denied for well over a million dollars in the first year for services we provided because they didn’t properly obtain authorization. But hey, they saved maybe 30k in salary so good on them, I suppose.
To cover nightshifts in the hospital a new manager imposed a rolling rota of days and nights… 75% of the staff handed in their resignation as this was not an optional thing…
Classic play silly games, win silly prizes.
When lockdown hit, they immediately decided to ‘save money’ by furloughing almost all of the staff in order to get some government money.
But we were a software company. Everyone could have written software from home. And that’s precisely what all our competitors did.
So first, we fell behind massively. Second, people on furlough grew antsy and quit for new jobs that allowed them to, you know, work. Third, the small handful of people left behind at the company were suddenly swamped with demands and got burned out and annoyed.
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