Page 67 - Healthcare News Sep/Oct 2022

Outlook
Continued from page 17
equipment is now in high demand and can be quite expen- sive. This has made it difficult to accurately track costs us- ing traditional cost-accounting methods, where more time and resources are needed to fully capture all costs.
Third, the pandemic has highlighted the need for better decision making about resource allocation. Cost account- ing can help managers to make informed decisions about where to allocate resources in a time of crisis.
Finally, the pandemic has resulted in a change in the way that patients receive care, such as the seismic increase in the use of telemedicine. With more patients being treated at home, there is a need for a cost-accounting approach that takes into account the cost of care delivered outside of the traditional setting.
All of these factors have created a need for a more modern cost-accounting approach that can adapt to the changing landscape of healthcare. Cost-accounting soft- ware that is designed specifically for healthcare entities can help organizations to track and manage their costs more accurately. Such software can provide real-time cost data, which is essential in today’s rapidly changing healthcare environment. Additionally, more relevant software can be used to create cost models that can help organizations to
“
make better pricing and reimbursement decisions.
The bottom line is that a more modern cost-accounting
approach is essential for healthcare organizations in the post-COVID world to more accurately track their costs and make informed decisions about pricing and reimburse- ment. Going about this can be done in a few simple steps.
Understand cost. The first step is to understand the cost drivers of care. Aim to identify the total cost of treatment.
The cost of care should be examined in order to under- stand the costs within the entire treatment process.
Identify cost drivers. The second step is to identify the cost drivers of care. Once cost drivers are understood, healthcare organizations can allocate cost appropriately and make informed decisions about where to allocate resources. To identify cost drivers, ask questions such as, what are the major cost components? What is the cost per unit of care? How do cost vary by patient population?
Allocate cost. The third step is to allocate cost based on clinical and business value, particularly with indirect costs. When cost is allocated based on value, decision makers can make informed choices about where to allocate resources.
Analyze cost. Finally, healthcare organizations must ana- lyze cost data to identify trends and improve cost manage- ment. Cost data can also help decision makers understand which cost-saving measures are working and which are not, and how to appropriately bill for their services.
Adopting a more modern cost accounting approach is essential for healthcare organizations to accurately reflect the true cost of care post-COVID. This will help improve decision making, better serve patients, and, ultimately, improve the bottom line. v
James T. Krupienski is partner, Auditing and Ac- counting, Health Care Services leader, at Mayers Brothers Kalicka, P.C.
Cost-accounting software that is designed specifically
for healthcare entities can help organizations to track and manage their costs more accurately. Such software can provide real- time cost data, which is essential in today’s rapidly changing healthcare environment.”
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AMERICAN CANCER SOCIETY .....17
AMERICAN INTERNATIONAL COLLEGE (AIC) .......................A9
ARMBROOKVILLAGE...............A23
BACON\WILSON.......................A20
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GOLDEN YEARS HOME CARE SERVICES ............................A26
HCN REPRINTS...........................17
HEALTHNEWENGLAND.......A4,A7
HEALTHCARE HEROES 2023 NOMINATIONS ....................A33
HEALTHCARE HEROES TICKETS
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HEALTHTRAX ................................ 5
HEATLHCARE HEROES-
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HOLYOKE MEDICAL CENTER ....A32
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HOSPICE OF THE FISHER HOME ..... ............................................A22
JGS LIFECARE ..........................A18
LEAH MARTIN PHOTOGRAPHY ..A5
LOG CABIN ..............................A15
MENTAL HEALTH ASSOCIATION (MHA)..................................A27
MERCY MEDICAL CENTER / TRINITY HEALTH......... A21, BACK COVER
MEYERS BROTHERS KALICKA, P.C.... ............................................A12
MIRAVISTA BEHAVIORAL
HEALTH CENTER ..................A25
OVERLOOK VISITING NURSE ASSOCIATION, HOMECARE
HOSPICE.............................A36
PIONEER VALLEY CREDIT UNION ..... ............................................A35
PUFFER’S SALON & DAY SPA ....A20
RIVER VALLEY
COUNSELING CENTER..........A33
SERVICENET .............................A18
SPRINGFIELD COLLEGE ...........A10
SPRINGFIELD DEPARTMENT OF HEALTH & HUMAN SERVICES ... ..............................................A8
SPRINGFIELD MAYOR DOMENIC SARNO ................................A10
VIABILITY..................................A17
VISITING ANGELS ....................A39
WESTMASS ELDERCARE ...........A12
WHAT’S NEXT IN HEALTHCARE NEWS .....................................7
YMCA OF GREATER SPRINGFIELD ... ..............................................14
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