Cost Accounting in Healthcare
Gain a practical understanding of cost accounting principles tailored to the healthcare industry. Learn to allocate costs, improve profitability, and make data-driven decisions using real-world examples and case studies.
Course Description
Cost accounting plays a critical role in the financial health of healthcare organizations, where tight margins, rising costs, and complex regulatory demands are everyday challenges. In this course, you'll build a strong foundation in healthcare-specific cost accounting principles and techniques, including cost allocation methods like direct allocation, step-down, and reciprocal approaches. You'll also explore the power of activity-based costing (ABC) to uncover the true costs of services and drive smarter, data-backed decision-making.
Through real-world case studies and practical examples, you'll learn how cost accounting insights can help healthcare organizations improve profitability, optimize resource allocation, negotiate better reimbursement rates, and build more sustainable operations without compromising quality of care.
In this course, you'll learn...
Course Objectives
To understand the fundamentals of cost accounting in healthcare.
To recognize the financial challenges unique to healthcare organizations.
To evaluate different methods for allocating costs across departments and service lines.
To apply activity-based costing principles to improve cost transparency.
To develop strategies to control overhead and improve financial performance.
To use cost accounting insights to drive strategic decision making at healthcare organizations.
How you'll apply these skills...
Allocate healthcare costs accurately across departments and service lines to improve financial reporting.
Identify high-cost procedures and underperforming service lines to guide strategic decisions.
Support leadership with data-driven insights to optimize resource allocation and profitability.
Implement activity-based costing (ABC) to uncover the true cost of services and improve pricing strategies.
Develop overhead reduction strategies to enhance operational efficiency and financial sustainability.
Strengthen reimbursement negotiations with third-party payers by presenting precise cost data.
Help healthcare organizations meet regulatory requirements through improved financial transparency.
Course Instructor
Michael Carroll, CPA, CISA, CISM
Michael is an accounting and information security professional. He is also an Adjunct Professor at several higher education institutions, where he is responsible for teaching various accounting and information technology courses.
Michael earned his MBA in Accounting and B.S. in Accounting / Accounting Information Systems from Canisius University. Additionally, Michael is a Certified Public Accountant (CPA) and a Certified Information Systems Security Professional (CISSP). Michael is a current member of the NYCPA’s Education Committee and has been an Advisory Board Member for the Academy of Finance (AOF) since 2020.
Michael enjoys traveling, hiking, and watching the Buffalo Bills. He has also participated in several marathon events.
Course Content
Additional Info
Format
5-20 min. videos, 2 quizzes, and a final assessment
Field of study
Accounting
CPE Credits
CPEs 2.5
Prerequisites
Completion of our Revenue Recognition For Healthcare Accounting and our other foundational Healthcare Accounting & Finance Courses are recommended.