You are in charge of cost

Shifts in medical reimbursement dictate that physicians become knowledgeable about resource consumption. Price drives cost. The patient is now a cost center. Various models of physician-hospital integration are presented. A completely integrated staff in the hospital has the greatest potential for economic efficiency. The best method of cost accounting will include activity-based costs in a format that is understandable for physician education. Hospital cost management involves human resources, ordering practices, length of stay, purchasing, capital requirements, and benchmark targets. As health reform takes shape, physicians should be fully cognizant of cost, understand healthcare issues, and commit to improving the environment in which they practice medicine. The purpose of these activities is to improve the value of healthcare delivery for all patients.