costcontainment
Cost containment, sometimes written as costcontainment, is the set of strategies and actions aimed at limiting the growth of expenses while preserving value and outcomes. It applies across organizations in sectors such as manufacturing, healthcare, government, and non-profits and can target operating costs, capital expenditure, and cost of goods sold.
Common techniques include rigorous procurement and supplier management; process improvement and waste reduction (for example, lean
Measurement and governance are critical. Metrics often include cost per unit, variance to budget, total cost
In healthcare, cost containment focuses on price controls, care pathway standardization, efficiency gains, and improved care
Critics warn that aggressive cost containment can harm quality, innovation, or service levels if not carefully