As organisations adapt to the revenue compression from COVID-19 and increased competition from insurers and digital disrupters, strategic cost transformation becomes critical to success. In order to improve profitability and make strategic cost-reduction decisions, health systems need to have full line-of-sight into their clinical and service-line costs. Allocations/estimates of cost and large pools of overhead are inaccurate, and these obsolete methods have no credibility with physicians and administrators.

Activity-based costing is the only way to accurately measure and assess 100% of your clinical costs, understanding where and how resources are being consumed, and by whom. Supported by advanced extrapolation technologies, activity-based costing can place health systems far ahead of their competitors, and it's easier to implement than one would think.