Problem
Cost overruns and extraordinary spending by healthcare organizations harms the sustainability of the healthcare organization. Through activity-based costing (ABC), the healthcare industry is working to combat disproportionally rising costs to GDP in the United States (HealthCatalyst, 2018). Read Service Lines and Activity-Based Costing Reveal True Cost of Care for UPMC and discuss how activity-based costing can be used to mitigate rising costs and the change in patient perception.