Managing The Cost Of Services—Matters Now More Than Ever

You may think that managing unit costs matters less as we move away from fee-for-service reimbursement models to value-based models – but that would be an inaccurate assumption. Value is the ratio of cost to benefit (see Improve Your Value Equation: Planning For Turbulence In 2017 and The (Inescapable) New Value Equation In Health & Human Services: Why It Will Determine Who Succeeds). And, in value-based reimbursement models, the cost of each unit is an integral part of success. To “earn” bonuses and prevent penalties, it is critical to know the cost of each intervention that is . . .