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Healthcare organizations have traditionally encountered great difficulty in accurately capturing the costs of the services and goods that they provide. Traditional costing methods (i.e., direct, step-down, etc.) have proven marginally useful despite decades of use. In general, this has caused proble…
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Healthcare organizations have traditionally encountered great difficulty in accurately capturing the costs of the services and goods that they provide. Traditional costing methods (i.e., direct, step-down, etc.) have proven marginally useful despite decades of use. In general, this has caused problems within healthcare organizations as it obscures the true cost of care and overall profitability. Cost overruns and extraordinary spending by healthcare organizations harm the economic sustainability of the healthcare organization.
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