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How Much Does That Cost?

Updated: Nov 5, 2018


This seems like a simple question in almost every aspect of our lives, except our healthcare services... Why is this?


Healthcare has a challenge in determining costs associated with the care they deliver. Understanding this challenge, E&A determined to accurately calculate the costs of care a hospital incurs using Time-Driven Activity-Based Costing (TDABC).

We performed the study at an Endocrinology & Diabetes clinic in Texas. Our analysis revealed that on average, the clinic incurs a cost of $146 to treat a patient. We identified the key cost drives in the care cycle and recommendations on how the clinic can become more efficient and aware of their costs.

As payment reforms and technology adoption changes the traditional business model of care delivery, TDABC is a step towards preparing healthcare for value-based care. Thoroughly understanding the costs of providing care to patients gives a care setting the power of empirical data to make informed decisions during these changing times.

View our publication to learn more about the methodology and how this TDABC data arms organizations with the ability to measure and track operational performance.

#Publication #TDABC #CostAnalysis