Health systems command billions of dollars in revenue and yet few can do what other billion-dollar companies consider table stakes - identify the cost of the services they provide. Now insurers, consumers and other major healthcare buyers are demanding better value for their spending, and healthcare providers are scrambling to calculate these costs.
China’s healthcare reform has prompted local health authorities to focus more on cost and less on income at hospitals, while introducing more stringent requirements for lean management and precise cost accounting. China is seeing a great increase in the application of precision medicine based on big data as a means to improve medical service quality and control medical costs effectively. The approach relies on collection of accurate data and timely analysis. Under the guidelines set out in the 13th Five-Year Plan, an increasing number of hospitals are improving their approach to gathering, structuring and analysing information and looking at more advanced technologies to achieve lean management, and ultimately, reduce costs.