Healthcare Accounting: Contracts, Costing & Pricing

Build the skills to evaluate healthcare contracts, model costs, and set sustainable prices. You’ll start with risk‑based (capitated) contracts—how revenue is recorded, how medical claims expense is estimated (RBUC/IBNR), and how to account for loss‑generating arrangements—so you can quantify financial risk and performance under value‑based care. Next, transition into managerial accounting to classify fixed, variable, and mixed costs; apply cost‑volume‑profit (CVP) analysis; and see how reimbursement type (fee‑for‑service vs. capitation) affects profitability and decision‑making. Then, master departmental costing and cost allocation. Practice the Direct and Step‑Down methods, understand when and why allocation choices matter, and learn how cost pools and cost drivers (e.g., square footage, revenue) shape service line profitability. Finally, apply these tools to pricing strategy. Work through price‑setter vs. price‑taker scenarios, bundled pricing, marginal vs. full‑cost pricing, and sensitivity analysis to establish breakeven and profit‑targeted prices and to negotiate feasible contract terms. By the end, you’ll be able to evaluate contracts, allocate costs fairly, and determine prices that align with financial and strategic goals. Complete the full specialization to become eligible for Credit‑By‑Exam toward university credit.