Three Critical Tools For Unit Cost Management
Wednesday, May 5, 2010 Most provider organizations find themselves in a unit cost management squeeze. For most, payers are not giving rate increases – but the costs of doing business (health benefits, salaries, technology investments, etc.) are increasing. For a few, payers are actually decreasing rates. This environment makes unit cost management a critical management team competency. Activity-based cost management Target costing Value reengineering of processes Activity-Based Cost Management (ABCM) can improve the way your organization tracks its costs versus traditional costing methods. It focuses on management of activities and processes as a means of improving the value received . . .
