Activity-Based Costings Time Has Come

How healthcare finance executives must consider the actual cost of services for long term success.

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The vast majority of healthcare providers don’t know how much it costs them to deliver patient care. According to the Healthcare Financial Management Association (HFMA), under 10% of hospitals and healthcare systems have advanced cost accounting systems capable of providing accurate cost data across the continuum of care. However, that’s starting to change. Several trends are hurting providers’ bottom lines, and the organizations that will survive and thrive in the long run will be those that have a true understanding of cost.

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