What Are a Hospital’s Costs? Utah System Is Trying to Learn

Only in the world of medicine would Dr. Vivian Lee's question have seemed radical. She wanted to know: What do the goods and services provided by the hospital system where she is chief executive actually cost?

Most businesses know the cost of everything that goes into producing what they sell — essential information for setting prices. Medicine is different. Hospitals know what they are paid by insurers, but it bears little relationship to their costs.

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