Time-Driven Costing™ Released for Cloud-Based Advanced Cost Accounting Solution
Currently Deployed at Over 100 U.S. Healthcare Delivery Systems
While hospitals represent roughly 33% or $1.2 trillion of the total $3.6 trillion spent annually on U.S. healthcare, their average net operating margins have dropped below 3% with close to 30% operating at a loss. At the same time, less than 10% of healthcare providers have access to accurate cost data via an advanced cost accounting solution, making it very difficult for them to identify variation and waste in order to reduce the cost of care.
Editor's Note: This article was originally posted on Strata Decision Techonology's website.
Strata announced the availability of Time-Driven Costing (TDC™) to help healthcare systems better understand their cost and margins in support of their clinical imperatives. TDC is a feature within StrataJazz®, the market’s top-rated application for advanced cost accounting and financial decision support. Over 100 U.S. based healthcare delivery systems have or are in the process of deploying StrataJazz for advanced cost accounting, which includes the TDC capability.
“Our customers are working together to implement best practices in order to drive more value for their providers, their organization and the community that they serve. During the Summit we discussed the playbook that top organizations are using to become a Center of Excellence for financial planning, analytics, and performance to address their most significant challenges and most important priorities,” said Dan Michelson, Chief Executive Officer of Strata Decision Technology. “There has never been a time when physicians could do more to help patients or when administrators could do more to help physicians. The resources are there, we just need to make sure we use them wisely. Understanding how to leverage those finite resources as effectively as possible is why capabilities like Time-Driven Costing are so mission critical.”
The TDC capability within StrataJazz allows providers to extract time-based data from existing systems in an automated fashion, allowing for more accurate and detailed costing. The application has included time-driven features in the past but has now expanded the coverage to include TDC for surgery, anesthesia, physician time, clinical time, emergency department, nursing, imaging as well as more traditional time-driven activity-based costing. TDC enables organizations to understand operational costs beyond traditional cost accounting. Issues related to capacity utilization, resource analysis in physician use of support staff time, and the associated impact on clinical outcomes can automatically be tracked.
Strata has earned top honors as the KLAS Category Leader for Business Decision Support for four consecutive years. KLAS is viewed as the Consumer Reports for digital health and their research is based on thousands of healthcare provider surveys and interviews conducted throughout the year.
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