Healthcare organizations face unparalleled pressure to increase operating margins as they adapt to the revenue compression from COVID-19 and growing competition from insurers and digital disrupters. Yet, many health systems rely on outdated, revenue-centric cost accounting solutions that are ill equipped for strategic financial decision making. As a methodology for today’s complex healthcare environment, activity-based costing (ABC) can capture healthcare resource use at a granular level. With this service-level insight into clinical cost, ABC provides actionable intelligence to help organizations improve profitability and make strategic cost-reduction decisions. These comprehensive costing solutions give health systems a full understanding of cost across the care continuum—the only level of insight that will enable strategic cost transformation in the industry’s new normal.
Learn more about Bob Alexander
Bob currently leads the implementation and ongoing support of the CORUS Suite with a team of finance and technical professionals. Prior to joining Health Catalyst in 2016, Bob led the design of a home-grown, advanced activity-based costing system as a Lead Financial Analyst at UPMC after working in multiple departments through UPMC’s Finance Management Rotation (FMR) program. He was born in England, grew up in southeast Michigan, and became a US citizen in 2011. Bob has a degree in Finance from Penn State University and currently lives in Pittsburgh with his wife and daughter.
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As health systems increasingly transition to a value-based care model, the financial strains and uncertainty of COVID-19 have placed more urgency on cost management. More than ever, organizations need a costing solution that helps them understand the true value of their services. With the right next-generation activity-based costing (ABC) tool, health systems can access the detailed data they need to lower the cost of care, automate costing activities, and reduce administrative costs while preparing for the mounting intricacy of the post-pandemic setting.
Activity-based costing meets healthcare’s complex COVID-19-era costing needs by addressing four big challenges: