Discussion Question
Do you believe that grouping expenses by diagnosis and procedures (based on type of services provided) is better to use for control and planning than grouping expenses by care setting (based on location of service provided)?
This is related to Healthcare Finance.
(Chapter 6 discusses Expenses (Outflows) – Expenses are the costs that relate to the earning of revenue.
Chapter 7 draws the distinction between Direct and Indirect Costs – direct costs are incurred for the sole benefit of a particular operating unit. Indirect costs are incurred for the overall operation and not for any one unit.)
Do you believe that grouping expenses by diagnosis and procedures (based on type of services provided) is better to use for control and planning than grouping expenses by care setting?
