Healthcare Tech Cloud | Healthcare Cost Accounting: Deep Dive
page-template,page-template-full_width,page-template-full_width-php,page,page-id-293,woocommerce-no-js,ajax_fade,page_not_loaded,,qode_grid_1300,qode-content-sidebar-responsive,columns-4,qode-theme-ver-12.1,qode-theme-bridge,wpb-js-composer js-comp-ver-5.4.2,vc_responsive,currency-usd

Healthcare Cost Accounting: Deep Dive

Course Description

Cost Accounting is an accepted method in the healthcare industry for economically and accurately tracing the consumption of a health system’s resource expenses (e.g., labor, supplies) to treatments, procedures, and patients. In a value-focused healthcare system, providers need a rational system for assigning so-called nontraceable expenses that are consumed to their origin.


This course is designed to teach cost accounting methodologies and apply those techniques to the hospital and health system setting. This is done using a combination of healthcare-focused lecture, discussion, real-world examples, and hands-on labs. Those who are responsible for designing, implementing, or maintaining cost accounting systems would gain the most from this course. However, other attendees who would like to understand the benefits and nuances of Service Line Profitability reporting could also gain from this course.

Course Goals

Attendees who complete this course successfully will be able to:

  • Have a detailed understanding of how and why Cost Accounting is applied in a Healthcare setting
  • Understand and apply costing terminology and concepts
  • Understand the relationships between various source systems that can be used in a cost model
  • Know when and how to apply Reclassifications

  • Describe the pros and cons of each Overhead Allocation Methodology and how each method is calculated
  • Differentiate between Patient Traceable and Allocated Costs
  • Describe the pros and cons between RCC, ABC, and Hybrid Costing Methodologies and how each method is calculated
  • Become familiarized with best practices of Reconciliation and Reporting of cost information


  • Healthcare Cost Accounting Overview presentation

Course Outline

  • Review of the Basics of Healthcare Cost Accounting
  • Data Gathering & Initial Configuration
  • Reclassifications
  • Overhead Allocation
  • Patient Actual/Explicit Costs
  • Patient & Service Line Allocations

  • Reconciliation & Auditing
  • Reporting
  • Cost Accounting Process Review: From General Ledger to Patient
  • Best Practices
  • Why Do We Care?