Cost Management of Healthcare Organizations for Financial Sustainability

Healthcare providers in a dynamically changing environment are under pressure to control the rapid growth of healthcare costs, which is greatly assisted by internal audit. Healthcare organizations today face a myriad of challenges as they try to adapt to demands for better quality and reduced costs. Health service production needs methodologies based on the specific characteristics of health care. Management-based segmentation methods reveal that emergencies, continuous care, prevention and treatment have different logics of value creation, waste, demand, and finance. Healthcare operations management focuses on organising resources and flows so that given goals, costs and clinical quality and patient experience can be achieved with the available resources. In this context, the purpose of this paper is defined, which is to point out the specifics of cost management in healthcare organisations.