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Pros And Cons Of Cost Accounting In Healthcare

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Pros And Cons Of Cost Accounting In Healthcare
Cost Accounting /Cost Concepts Monika Nanchahal HA 520-01: Healthcare Finance Management Abstract
Today healthcare industry is becoming challenging due to health reforms and competitive pressure. The only valid business strategy can manage the cost and quality of patient care. It is imperative to understand the concept of cost accounting to accept these challenges. Cost accounting models can be used in different areas which could be cost management, pricing or planning. As it is planning process and could give insight into the volume, …show more content…
The only valid business strategy can manage the cost and quality of patient care. Knowledge of cost accounting can help managers to accept these challenges. Cost accounting models can be used in different areas which could be cost management, pricing or planning. As it is planning process and could give insight into the volume, cost and margin analytics. For these activates managers require information which is created by the business’s managerial accounting system, which in turn uses organizations and subunit data, and this system is for managers. It is important to form internal control system so that it could verify or record the information through audit …show more content…
As there are pros and cons of everything, this method does have too. The pros are it could provide a measure to realization, awareness, and know-how to prove indications in trying to do cost. According to gape ski (2012). “due to a large number of the cost, it is not always possible to capture them in their entirety, and the cost is placed in the appropriate field so that it is billed correctly.”
Cost accounting has a significant role in U.S. healthcare system and hospital as they are making the transformation to value-based care. So it is important for the manager to understand the importance of capturing the cost.
In healthcare organizations there are the different department, the manager should have liability to obtain the value so that the bodies remain sustainable Managers of health care business have many responsibilities including planning, budgeting and overseeing routine operations. Along with they should provide the quality care to the patient at very reasonable
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