A New Costing Model in Hospital Management

Abstract

Traditional cost systems cause cost distortions because they cannot meet the requirements of today's businesses. Therefore, a new and more effective cost system is needed. Consequently, time-driven activity-based costing system has emerged. The unit cost of supplying capacity and the time needed to perform an activity are the only 2 factors considered by the system. Furthermore, this system determines unused capacity by considering practical capacity. The purpose of this article is to emphasize the efficiency of the time-driven activity-based costing system and to display how it can be applied in a health care institution. A case study was conducted in a private hospital in Cyprus. Interviews and direct observations were used to collect the data. The case study revealed that the cost of unused capacity is allocated to both open and laparoscopic (closed) surgeries. Thus, by using the time-driven activity-based costing system, managers should eliminate the cost of unused capacity so as to obtain better results. Based on the results of the study, hospital management is better able to understand the costs of different surgeries. In addition, managers can easily notice the cost of unused capacity and decide how many employees to be dismissed or directed to other productive areas.

Unit Cost Rawat Inap Berdasarkan Golongan Sebab Penyakit Pada 84 Rumah Sakit Di Indonesia Tahun 2016

“…22 Akan tetapi, metode ABC juga masih perlu disempurnakan. 23 Hasil analisis uji perbedaan pada penelitian ini menunjukkan ada pebedaan unit cost rawat inap (uji median) menurut golongan sebab sakit antar kelas RS (A, B, dan C) pada 15 jenis golongan sebab sakit. Terdapat lima jenis golongan sebab sakit yang tidak tedapat perbedaan unit cost antar kelas RS, yaitu Malaria (semua jenis malaria), Neoplasma ganas payudara, Anemia, Diabetes melitus YTT, dan Penyakit sistem Kemih.…”

Defining the value framework for prostate brachytherapy using patient-centered outcome metrics and time-driven activity-based costing

“…Time-driven activity-based costing (TDABC) has been introduced to health care to remedy these problems [17, 18]. TDABC is a bottom-up costing tool that measures resource utilization over the full cycle of patient care to determine the true cost of delivering care to the provider [19–21]. This methodology has been successfully utilized by several industries [17, 18], and more recently, TDABC has been used to measure costs and drive process improvements in a variety of medical settings [22, 23].…”

Time-driven activity-based costing of multivessel coronary artery bypass grafting across national boundaries to identify improvement opportunities: study protocol

“…[11][12][13][14][15] Time-driven activity-based costing (TDABC), 16 17 a costing method widely employed in other sectors, such as retailing, manufacturing and financial services, has recently begun gaining traction in healthcare. [18][19][20][21][22][23] In the select healthcare cases where it has been applied, TDABC has been successful at identifying and reducing unused capacity and improving resource allocation for optimal efficiency. 19 We conducted a TDABC study in conjunction with three Joint Commission accredited 24 25 hospitals with reputations for high quality and efficiency, two in the USA and one in Bangalore, India.…”

“…[18][19][20][21][22][23] In the select healthcare cases where it has been applied, TDABC has been successful at identifying and reducing unused capacity and improving resource allocation for optimal efficiency. 19 We conducted a TDABC study in conjunction with three Joint Commission accredited 24 25 hospitals with reputations for high quality and efficiency, two in the USA and one in Bangalore, India. The goal of the study was to compare the CABG production processes of these selected hospitals in an attempt to explain the difference in production costs between them and to characterise opportunities to improve CABG affordability in the USA.…”