October 22, 2015
Article
Harvard Business Review (website)

The Mayo Clinic Model for Running a Value-Improvement Program

By: Robert S. Kaplan, Derek A. Haas, Richard A. Helmers, March Rucci and Meredith Brady

Format:Electronic

Abstract

Applying time-driven activity-based costing (TDABC) in health care cannot be delegated to the finance function. The most successful implementations have had strong executive support, exceptional clinical leaders, and dedicated, multi-disciplinary project teams. The paper describes the disciplined six-step process used by Mayo Clinic to use accurate cost information to enhance care delivery and realize cost efficiencies.

Keywords

Service Delivery; Activity Based Costing and Management; Health Care and Treatment; Health Industry

Citation

Kaplan, Robert S., Derek A. Haas, Richard A. Helmers, March Rucci, and Meredith Brady. "The Mayo Clinic Model for Running a Value-Improvement Program." Harvard Business Review (website) (October 22, 2015). (A collaboration of the editors of Harvard Business Review and the New England Journal of Medicine.)