Healthcare Cost & Profitability
Most hospitals cannot tell you the true cost of a knee replacement, a dialysis session, or an ICU day. ABC / TDABC gives you that number – and the margin attached to every payer contract.
The Healthcare Costing Problem
Healthcare organisations face a unique costing challenge: shared resources serve multiple patient types, payer contracts vary widely, and overhead allocation by department masks enormous variation in procedure-level profitability.
Payer Contract Blind Spots
Negotiating insurance and government contracts without knowing your true cost per procedure means you are either leaving money on the table or unknowingly serving entire payer segments at a loss.
Shared Resource Complexity
Operating theatres, imaging equipment, nursing staff and support services are shared across dozens of clinical pathways. Standard allocation methods systematically distort procedure costs.
Volume vs. Value Confusion
High-volume services are assumed to be profitable. ABC / TDABC regularly reveals that the highest-volume procedures carry the thinnest or negative margins when full costs are properly traced.
What ABC / TDABC Delivers for Healthcare
We apply Time-Driven ABC to map the full cost of every clinical pathway – from admission to discharge – including all direct and indirect resource consumption.
True Cost Per Procedure
We calculate the fully-loaded cost for each procedure type, DRG group, or clinical pathway. You know exactly what each service costs before you negotiate the next contract.
Payer Profitability Analysis
Map margin by payer, insurance plan and payment model. Identify which contracts are profitable, which break even, and which should be renegotiated or exited.
Clinical Pathway Optimisation
Once cost visibility exists, clinical and operational teams can redesign pathways to reduce consumption of expensive resources without compromising outcomes.
Our Healthcare Engagement Model
We work with hospital groups, clinics, diagnostic centres and specialist practices across Europe. Our process is designed to work with existing data – no new systems required.
Profit Check
A free 20-minute diagnostic to assess your current cost visibility, identify the highest-risk service lines, and determine the ROI of a full ABC / TDABC model.
ProfitAudit 360
A structured 5-25 day engagement delivering a full ABC / TDABC model, procedure-level profitability analysis and a prioritised improvement roadmap.
Implementation Support
We train your finance and clinical teams on the model, integrate it with your reporting cycle, and support renegotiation of payer contracts.
Know Your True Cost Per Procedure
Start with a free Profit Check to identify the most critical gaps in your healthcare cost visibility.