Are Cost Estimates Leading To The Wrong Decisions in US Hospitals?

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Rethinking Cost-to-Charge Ratios


More than half of US hospitals use cost-to-charge ratios as a primary cost estimation method since true procedural cost accounting can be prohibitively expensive.

Risks are Present

Although many hospitals believe that cost-to-charge ratios are relatively acceptable for internal planning purposes, there are many risks of this approach which can lead to sub-optimal strategic decisions.


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