The healthcare sector will never be able to get its costs under control unless it takes a close look at what every iota of delivering services will cost, according to a new report by Chilmark Research.
"As the cost of care continues to rise, cost management has become an important analytic and operational objective," said Chilmark Research Founder and Managing Partner John Moore in a statement.
The report advocates for what is known as “continuous costing”--keeping track of every expenditure and related trend in real time.
It also attempts to provide guidelines for the nation, which has by far the highest healthcare costs in the developed world, a source of rising anger among consumers. And not only is the United States' per capita spending the highest in the world, but quality and outcomes lag behind countries that spend far less money on care.
“Some providers break down profit and loss and budgetary variances at the department level. Others use RVUs or RCC processes for one more level of granularity,” the report said. “Few providers, though, know their costs of providing care beyond what shows up in the general ledger at the end of the year, quarter, or month.”
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