Define "cost accounting" in the context of health care.

Cost accounting in the context of health care refers to a systematic approach used to track, record, and analyze the costs associated with delivering health care services. It involves not only collecting data on expenditures, such as salaries, supplies, and overhead, but also analyzing these costs to determine the efficiency and profitability of various services provided by a health care organization. This information is essential for making informed financial decisions, setting prices, and improving the overall financial performance of health care facilities.

By understanding the costs incurred, health care organizations can better allocate resources, identify areas where efficiencies can be gained, and ultimately improve service delivery while maintaining financial health. Cost accounting also aids in strategic planning and the evaluation of cost control measures, helping organizations stay competitive in the evolving health care marketplace.