Benefits of grouping expenses by diagnoses and procedures better to use for control and planning than grouping expenses by care setting?

Grouping expenses by diagnoses and procedures allows for a more precise understanding of the costs associated with specific health conditions and treatments, enabling targeted interventions and resource allocation. This method facilitates better tracking of patient outcomes and cost-effectiveness, which can enhance clinical decision-making and operational efficiency. In contrast, grouping by care setting may obscure the nuances of individual patient needs and the financial impact of specific treatments, limiting effective planning and control. Overall, diagnosis and procedure-based grouping supports a more strategic approach to managing healthcare expenses.