In an industry long wedded to fee-for-service payment structures, understanding the true cost of an episode of care across multiple settings is rare. However, several organizations are tapping into their cost-accounting systems to discern the total cost of care and prepare for a future defined by value-based payment. Modeling Physician Performance Until recently, only the…

About two years ago, leaders at Children’s Healthcare of Atlanta began to wonder if they could connect the facility’s overhead costs to actual activity involved in treating the patient. That led to the launch of an organizational initiative that’s changing how the hospital looks at the cost of providing care.