Understanding cost of care when growing by acquisition

LH_low-resKnowing what you charge for a service is not the same as knowing the cost of providing that service.

According to Modern Healthcare, investigating the true cost of care is new to many if not most providers.

Modern Healthcare points out that high-deductible plans are one reason providers want to get a handle on costs.

Another driving force might be the consolidation underway in health care.

With ambulatory care incentivized under value-based care contracts more health systems are expanding their outpatient services – in many cases through acquisition.

Since payers are moving toward paying the same amount for procedures regardless of care setting, acquisitions require not only a knowledge of cost of care but also knowledge of how cost differs between care settings and the ability to find opportunities for standardization.

Teri Gatchel, solutions design consultant for Optum Physician Solutions, talks about the connection between cost of care and acquisitions in a new podcast.

Click here to download Growth through acquisition: Meet the demands.

You’ll discover what question to ask first about newly acquired practices, learn about the impact of acquisitions on overall efficiency, and you’ll find out what metrics to measure to identify revenue leaks.

 

About the Author:

Leslie Cozatt currently serves as Director of Marketing, Optum Provider – Thought Leadership and Content Strategy.

She directs the development of content that spotlights the role of data analytics in healthcare – specifically the transition to value-based care, risk management and population health management. She brings to her role more than 20 years of experience developing B2B and B2C integrated marketing campaigns for companies including ThreeWire, Eliance and 3M. Leslie attended the University of Minnesota and graduated from Wellington College with a BS in International Business & Communication.

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