Certified Disability Management Specialist (CDMS) 2025 – 400 Free Practice Questions to Pass the Exam

The identification of "hard savings" typically refers to quantifiable financial gains that can be directly attributed to specific actions or changes within an organization. In this context, the choice involving a change to a contracted PPO (Preferred Provider Organization) exemplifies hard savings because it often leads to lower healthcare costs for the organization. By negotiating with a PPO, organizations can establish fixed rates for services, resulting in predictable expenses, reduced claims costs, and ultimately tangible financial benefits. These savings can be measured directly in terms of decreased spending on healthcare services.

The other options mentioned, while beneficial, fall under different categories of cost savings. For instance, wellness programs might lead to improved health among employees and potential long-term savings but are typically categorized as soft savings since the financial impact is more hypothetical and could take time to materialize. Similarly, reductions in staff turnover and increases in employee productivity contribute positively to the organization's bottom line but do not provide the immediate, measurable financial impact associated with hard savings. These outcomes are important but often involve estimates and indirect benefits rather than direct cost reductions.