Whatever direction reform takes over the next several years, healthcare organizations will remain under intense pressure to reduce costs and overhaul inefficiencies. Financial pressures are coming from every area of healthcare: payers, the government and healthcare organizations competing for market share and doctors. The only way to sustain an organization in this financially charged environment is to tightly manage profitability, which cannot occur without understanding true costs and profit sources. Organizations that fail to recognize and meet this imperative will find it increasingly difficult to compete and may eventually have to close their doors.
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