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Can a True-Cost Model Save Your Hospital?



It's no secret that healthcare costs are out of control. For finance leaders who want to get serious about cutting costs, process-based cost modeling may be the answer.



1 comments on "Can a True-Cost Model Save Your Hospital?"
John Doub (2/14/2012 at 11:02 AM)

Agreed 100%. When I was in private industry manufacturing products, we tracked total materials and labor for every product we built, applied overhead, and knew exactly what our cost was. At my hospital they have a cost model that is probably not close to reality. Also performance, outcomes, and profitability of physicians must be part of the score card. Unfortunately in healthcare, we can't just raise the price to increase margins, so knowing the true cost and chipping away at multiple products to decrease cost is the only viable alternative. Great article and well timed.