University of Pittsburgh Medical Center wants to commercialize its cost management technology that measures the true costs of healthcare delivery, and is teaming with analytics vendor Health Catalyst to do it.

As the industry transitions to value-based payment, providers must be able to better understand the costs of delivering care and how to price services if they are to be financially viable. However, the problem—according to UPMC and Health Catalyst executives—is that healthcare has struggled to accurately calculate the cost of its activities and services due to the complexities of disease and inability to systematically share, store and analyze data.

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