The patient asked Dr. Shah how much treatment was going to cost, and he hit a wall. He had no idea what the cost of care was. As a resident, he and many others abide by the Hippocratic Oath to first, do no harm, and always keep the patient’s health and safety at the forefront. In training, he says physicians simply are not trained to think about the cost, or financial well-being, of their patients. This lack of knowledge “eroded [the patient’s] trust in me,” Dr. Shah said.
CFO’S FATAL FLAW: SURVEY FINDS 9 OF 10 HOSPITAL EXECUTIVES DON’T KNOW THEIR COST
A recent survey of 100 hospital and healthcare executives conducted by Strata Decision Technology and Becker’s Healthcare found 90 percent of respondents don’t know their cost to provide services.
More than $1 trillion in healthcare spending flows through hospitals annually, making hospital systems critical players in managing and reducing national healthcare spending. However, many hospital CFOs are in the dark when it comes to reducing cost in a multibillion-dollar business with thousands of employees and razor-thin operating margins because of poor visibility into true cost of care at their institution.
Readers will learn:
- Three common issues in hospital cost accounting that must be addressed.
- Key drivers behind the shift to advanced cost accounting.
- Strategic benefits of advanced cost accounting applications.
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