CAP Professional Cost Accounting Project Management for Healthcare

Cost accounting partners has a simple focus...

...to help healthcare facilities define and understand the costs associated with patient services. Facing an increasingly complex operating environment, hospital leaders are finding a need for more effective strategic management. Critical decisions must be made to determine how to balance quality care issues and rising costs with reimbursement scenarios that are less than optimal.

What services should we offer? Do our reimbursement plans provide a positive margin? Where should we spend scarce capital resources? How much does it cost to provide a day of care in one of our nursing units? Should we eliminate all unprofitable product lines? What percentage of our costs are fixed?

Answers to these and other similar questions can only be found with help from an effective cost accounting program, and that’s where Cost Accounting Partners can help. With over 25 years of combined experience and more than 300 successfully completed cost accounting projects, we have learned that the best approach to cost accounting is a partnership. CAP works directly with front-line managers, providing the leadership and guidance that results in success.

Starting with an allocation of indirect costs, our process helps define the true operating cost of each revenue center. Subsequent steps determine the cost of resources required to perform each of the detailed charge items that comprise the hospital’s revenue cycle. The end result is a fully-costed charge master, with costs defined by expense classification into meaningful categories such as fixed/variable and direct/indirect.

For many hospitals, developing meaningful cost data has proved to be an elusive target. Staffing priorities, turnover and simple lack of experience have made it difficult to complete cost accounting projects. Those issues disappear with a partnership with CAP. We bring an affordable solution – along with the knowledge and skill – to cost accounting projects for hospitals of all sizes.