US Hospital Cost Estimating Can Lead to Bad Decision Making

thunderfactory's picture
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, more 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.
Image: 
us-hospital-cost-estimating-can-lead-to-bad-decision-making_50291964d04b3.png
Type: 
Featured

Category:

Publishers:

Thumb Meta Data: 
us-hospital-cost-estimating-can-lead-to-bad-decision-making_50291964d04b3.png
Hash: 
ce4f895382e72a43bdcef6c0261d640e
Reviewed: 
Infographic Type: 
Infographic
Visible on Site: 
Show in Portfolio: