Health Care Reforms

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the production of the end product. For health services the end product would be the aggregation of applied procedures, tests and therapies related to a particular patient treatment. Accounting systems categorize expenditures in terms of labor, materiel and capital, allocating pools of common expenses and overhead that can't be directly traced to a specific product or service. The impreciseness of most allocation techniques tends to misrepresent real cost levels, resulting in poor business decisions and mis-allocation of resources.
Reform will be a catalyst spurring the materiel management organization to learn more about internal customers and supplier's operations. The final customer ultimately pays for the inefficiencies of everyone else in the supply chain. If the customer doesn't plan or effectively communicate changes in demand, or misuses the item, supply cost rise. If the supplier lacks quality controls, has poor production standards and rejects rates, or can't ...

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