What's the procedure? Your gide to costing methods and terminology

Ensuring long-term success in an already tight hospital industry demands more than simply meeting current operating expenses. To compete in the future, hospitals require enough profit to reinvest in capital equipment and buildings, whether directly or through the attainment of additional debt. With government and managed care reimbursement becoming increasingly fixed over the last few decades, a solid strategy for long-term success requires a thorough understanding of service costs. Specifically, hospital managers must understand costs at the procedure level to support the development of service-line strategies that facilitate continued and appropriate capital investment and future success. For this reason, many healthcare organizations have invested significantly in formal cost accounting systems. Clinical leader involvement is vital to the accurate costing of services.