Preventable Readmissions and Financial Management in Healthcare: A Comparative Study of Cost Containment in Non-Profit and For-Profit Hospitals

Abstract

Efficient financial management is crucial for the sustainability and efficacy of contemporary healthcare systems. This analysis rigorously assesses cost containment initiatives implemented by Non-Profit (NFP) and For-Profit (FP) institutions and examines the financial consequences of avoidable hospital readmissions. The study does a narrative synthesis in accordance with PRISMA 2020 guidelines, analyzing 62 peer-reviewed papers published from 2010 to 2025. The assessment classifies cost conservation measures into four principal themes: operational efficiency, technological investment, administrative reorganization, and value-based care delivery. It indicates that FP hospitals primarily employ assertive cost-reduction and revenue-maximization strategies, such as outsourcing, performance-based contracting, and digital billing optimization. NFP hospitals prioritize long-term sustainability by focusing on community-oriented initiatives, care integration, and workforce development. The analysis emphasizes that unnecessary hospital readmissions intensify cost burdens, particularly for disadvantaged populations, affecting reimbursement schemes and institution rankings. The results demonstrate the need to synchronize financial management with fairness, policy adherence, and health outcomes. Policy proposals highlight the integration of value-based incentives, the standardization of readmission penalties, and the assurance of openness in ownership-driven financial practices. The analysis indicates that a hybrid framework for cost reduction that balances efficiency, accountability, and equity is essential for promoting sustainable and equitable healthcare delivery across various institutional systems.