title: A better approach to cost estimation.
abstract: Using ratios of costs to charges (RCCs) to estimate costs can cause hospitals to significantly over- or under-invest in service lines. A focus on improving cost estimation in cost centers where physicians have significant control over operating expenses, such as drugs or implants, can strengthen decision making and strategic planning. Connecting patient file information to purchasing data can lead to more accurate reflections of actual costs and help hospitals gain better visibility across service lines.
authors.affiliation: Objective Health, Waltham, Mass., USA. russell_richmond@mckinsey.com
authors.forename: Russ
authors.initials: R
authors.lastname: Richmond
mesh_terms: D003365:Costs and Cost Analysis / Q000379:methods; D004469:Economics, Hospital / Q000458:organization & administration*; D005544:Forecasting; D017721:Hospital Costs / Q000458:organization & administration*; D014481:United States