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This new infographic illustrates how the cost estimating method used by more than half of US hospitals can lead to faulty decision making.According to newly released Objective Health research, mor... e than 50% of US hospitals use cost-to-charge ratios as a primary cost estimation method, mainly because true procedural cost accounting is viewed as prohibitively expensive. However, on average, 300-bed hospitals that use these cost-to-charge ratios overestimate the profitability of orthopedic surgery by $1.2 million per year.
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