Cost accounting is one of the most challenging areas in accounting to understand. "A cost accounting system is a system for recording, analyzing and allocating cost to the individual services provided to patients (e.g., medications, procedures, tests, room and board) (Becker's Hospital Review, 2014). The healthcare industry has been working toward the goal of correlating cost with quality.

 

Read Porter, M. E., & Lee, T. H. (2016). From volume to value in health care: the work begins. Jama, 316(10), 1047-1048. https://www.waportal.org/sites/default/files/resources/From%20Volume%20to%20Value.pdf

 

Please Explain how healthcare providers and patients can benefit when cost is correlated with quality of the healthcare services provided. I need an original discussion of a few paragraphs.