Health Care Cost Analysis
Understand true costs and cost drivers to improve the value of health care delivery
New life-prolonging treatments. A changing population. Rising costs. Declining margins. Exploding demand. Diminishing capacity. The entire health care landscape is changing drastically, but our lack of understanding and transparency of the true costs to provide care has reached critical mass. Many health care organizations lack accurate insight into the actual cost to deliver patient care. As a result, operational decisions are made based on volume and reimbursement rather than the value to patients' outcomes. With the impending shift to outcomes-based reimbursement, understanding costs and cost drivers is more important than ever.
" Accurately measuring costs and outcomes is the single most powerful lever we have today for transforming the economics of health care.""
— Robert S. Kaplan and Michael E. Porter
"The Big Idea: How to Solve the
Cost Crisis in Health Care"
Harvard Business Review
How SAS® Can Help
SAS gives health care providers an understanding of the true costs and cost drivers of the patient care delivery chain in order to find the path to patient profitability. With SAS, you can:
- Understand costs and cost drivers at the patient level. Achieve transparency on key cost drivers from different parts of the organization for transaction-level costs and profitability on millions of patients.
- Improve efficiency in the care delivery process. Use advanced analytics to perform sophisticated cost modeling and profitability analysis for both direct and indirect activities to individual patients, services, procedures, departments, etc., based on the specific care delivery process used.
- Gain productivity with one consistent and flexible system. SAS offers end-to-end solution integration with common metadata, integrated reporting, advanced analytics and cross-platform data integration, plus the freedom to choose from a number of costing methodologies.
- Improve visibility and benchmarking across the organization. Use standard reporting templates, ad hoc analysis and self-service OLAP reporting from patient, service, procedure and department levels to revenue from claims and other billing mechanisms through Web-based deployment.
How SAS® Is Different
- A complete solution. SAS offers the only end-to-end activity-based management solution that combines integrated data management, business modeling, reporting and analytics – all on one platform.
- Multiple costing and management methods. SAS supports many costing methods and theories, including top-down (full absorption, CAM-I, quantity-based assignment, single stage) or bottom-up (rate-based, time-based, event-based, time-driven, bill-of-cost, external unit, activity-based budgeting, activity-based planning and consumption-rate modeling), providing flexibility in modeling the way your business is designed.
- Scalability. SAS can handle hundreds of millions of patients to give you an understanding of costs at a detailed level for substantial volumes of cost drivers and transactions. This reduces the cycle time of the entire calculation and reporting process, and creates the opportunity for regular and more frequent management reporting and analysis of costs and profitability.
Related Products and Solutions
SAS® Activity-Based Management
SAS Activity-Based Management is an analytic application that models business processes to determine cost, profitability and drivers. With this solution, organizations can make informed decisions that streamline processes, deliver revenue growth and reduce costs across the organization.
SAS® Profitability Management
SAS Profitability Management provides accurate cost and profit calculations based on the rule-driven allocation of expenses and revenue down to the individual transaction. By providing insight into profitability factors, the solution helps decision makers focus on opportunities for profitability improvement.
Ready to learn more?
Call us at 1-800-727-0025 (US and Canada) or request more information.