Remove Activity Based Costing Remove Efficiency Remove Innovation Remove Operations
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Intelligent Redesign of Health Care

Harvard Business Review

To obtain an understanding of the costs, the center is applying a combination of two management tools: process mapping from industrial engineering and activity-based costing from accounting. Specifically, the center wants estimates of: The costs of caring for groups of patients with similar conditions.

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Health Care Providers Need a Value Management Office

Harvard Business Review

While leaders of many care organizations may be fearful that a new centralized staff function would add to corporate overhead and bureaucracy at a time when they are trying to reduce expenses, becoming adept at the delivery of value-based care requires capabilities that provider organizations currently lack. Insight Center.

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How to Design a Bundled Payment Around Value

Harvard Business Review

The procedures and resources in the bundle would include pre-op appointment and testing, use of the operating room and facility services on day of surgery, surgeon, anesthesiologist and support staff, clinic visits, in-hospital drug and laboratory tests, and post-surgical physical therapy. The bundle incorporated the metrics in two ways.

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The Mayo Clinic Model for Running a Value-Improvement Program

Harvard Business Review

These efforts were part of the providers’ quest to increase the value of their care delivery — in other words, achieve better outcomes at the lowest-possible cost. measure both costs and outcomes for comparative analyses of care variation. select a project team with the right skill sets.

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Case Study: When to Drop an Unprofitable Customer

Harvard Business Review

But he could not shake his newfound awareness of the amount of money Egan was losing with Westmid — the account's ratio of operating income to sales was a negative 28%. The Power of Customer Costing. Tommy, an avid reader of the business literature, wanted Egan to adopt an activity-based costing , or ABC, approach.