In the constantly changing world of healthcare, it is crucial not only to comprehend but also to put into place reliable cost accounting systems that create a clear connection between costs and the standard of care rendered. The urgency of achieving a harmonious balance between price and treatment quality is underscored by the revolutionary move from a volume-based healthcare system to a value-based one, as highlighted by Porter and Lee in their landmark work in 2016. The substantial advantages of this change apply to patients, as well as healthcare professionals, ushering in a new era of superior healthcare (Porter & Lee, 2016).
The convergence of costs and quality signals improved financial sustainability for healthcare providers. Healthcare organizations are better able to identify areas of excessive spending and decide where to allocate resources when costs and results are transparently associated. This newly discovered effectiveness improves the overall financial stability of healthcare facilities while also reducing economic inefficiencies (Frolich et al., 2016). Additionally, the value-based care model encourages medical practitioners to focus more on evidence-based preventative care and treatments, which ultimately improves patient outcomes. Healthcare providers can give care that is more effective and efficient by using cost accounting systems, which will improve their reputation and draw in more patients.
Patients benefit greatly from the symbiotic relationship between healthcare costs and quality, mainly through increased healthcare cost transparency (Robinson et al., 2008). By being informed about their treatment options, patients are better equipped to choose medical treatments and procedures that suit their unique requirements and preferences. Healthcare practitioners are further required to prioritize patient-centred outcomes and care as a result of the implementation of a value-based care approach. Higher-quality healthcare is delivered as a result of this shift in emphasis, notably towards chronic disease management and disease prevention. As a result, patients report feeling more satisfied with their treatment and seeing better results in terms of their health. Ultimately, this relationship between cost and quality promotes transparency while also raising the bar for healthcare as a whole, which benefits patients by empowering them to make informed decisions and receive top-notch, patient-centred treatment (Akinleye et al.,2019)
The assumption that there is a connection between cost and quality is not merely speculative; it has factual support. Numerous studies have shown that implementing cost accounting systems linked to quality indicators results in lower costs per patient episode and better patient outcomes for healthcare organizations (Frolich et al., 2016). These results unambiguously demonstrate how cost-quality alignment can disrupt and take the healthcare industry to new heights.
In conclusion, establishing a solid association between healthcare cost and quality is a crucial first step towards delivering more effective, patient-centered care. Healthcare providers can not only prosper financially but also provide services that cater to the best interests of both patients and providers by increasing transparency, improving patient outcomes, and giving people more choices over their healthcare decisions (Robinson et al., 2008). We must accept the paradigm change toward value-based care, which is made possible by efficient cost accounting systems. All stakeholders in the healthcare ecosystem stand to benefit from a better and healthier future as a result of this shift.
References
Akinleye, D. D., McNutt, L. A., Lazariu, V., & McLaughlin, C. C. (2019). Correlation between hospital finances and quality and safety of patient care. PLoS One, 14(8), e0219124.
Frolich, A., Talavera, J. A. V., Broadhead, P., & Dudley, R. A. (2016). A behavioral model of clinician responses to incentives to improve quality. Healthcare, 4(2), 93–98.
Robinson, J. H., Callister, L. C., Berry, J. A., & Dearing, K. A. (2008). Patient-centred care and adherence: Definitions and applications to improve outcomes. Journal of the American Academy of Nurse Practitioners, 20(12), 600–607.
Porter, M. E., & Lee, T. H. (2016). From volume to value in health care: the work begins. Jama, 316(10), 1047-1048.
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