UPMC Launches New Activity-Based Costing System

On May 1, 2014, non-profit UPMC announced it was launching a new activity-based cost management system that aggregates clinical, operational, and financial information from multiple information systems to allow financial analysts to match supplies and clinical resources across care settings to specific patients. The new system uses computer modeling tools and internally developed algorithms for more than 50 clinical activities.

Previously, UPMC used general formulas to account for costs associated with specific treatments, service lines, and facilities. UPMC piloted the activity-based costing system starting in 2013 at UPMC Mercy and UPMC Presbyterian.

In the announcement, UPMC Chief . . .