Hospitals Do Not Know Their Own Costs... Learn Why

Here’s a dirty little secret that no hospital executive wants you to know:  
Very few hospitals are actually managing their costs... and that is costing you money! 
 
Most hospitals simply have no idea how much different procedures cost. By not measuring the costs of services, hospitals are throwing away money that could be used to pay doctors more.

That’s why Activity-Based Cost Accounting is so helpful! Hospitals that do this tend to be far more efficient and financially stable than those that do not. 
 
In this episode, I break down how Activity-Based Cost Accounting can help doctors get the raise they deserve.

Sponsored by Nomi Health. New episodes released bi-weekly. 

Sources:

[thomass]

My wife was just charged $25, 000 for a pelvic CT scan at our local public hospital. They want an additional $5000 plus just for sitting in the emergency room.
Total bill was more than $32, 000.
This is totally unsustainable for almost everyone. by the way, we got a price for a CT scan across the street from the hospital for less than $300.

This is devastating.

[N.KikkeriMD-AffordableSurgery]

Really well put, Dr Bricker, great job as usual
-Dr Kikkeri

[christophermoriarty]

How do they account for their expenses at the end of the year?

[SamLopez]

You don't think the hospitals know how much a given procedure really costs? Sure it's going to vary a little based on insurance, but I think they know and don't want to share because it's not in their best interest to do so. Call me cynical, but I think the rapid rise in healthcare spend is due to these giant hospitals and insurers charging as much as they can get away with. It's almost like Monopoly money at this point.