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Developing price, charge, and cost rationales.

The health care industry has experienced some turbulent years recently, and the end does not seem near. Payment methods are being established that are entirely new and have not stood the test of time. For hospitals to remain competitive, they must be able to understand and master the different payment methods. The one common thread discussed throughout this article is that intelligent decisions concerning payment cannot be made until the costs are known. Hospitals cannot commit to these contracts and cannot expect to perform well and generate profits without this knowledge--without detailed cost information, it is a "stab in the dark." A good working relationship between cost accounting and materiel management is needed to accumulate timely and accurate information. This is why their relationship is so important. Those hospitals that master this information requirement will have the best chance of survival in the increasingly competitive field of health care.