Cost-price estimation of clinical laboratory services based on activity-based costing: A case study from a developing country

Mouseli, Ali; Barouni, Mohsen; Amiresmaili, Mohammadreza; Samiee, Siamak Mirab; Vali, Leila

doi:10.19082/4077

Cited by 13 publications

(14 citation statements)

References 9 publications

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“…Our findings regarding the share of each cost element of the total costs are consistent with the studies conducted by Bahadori et al and Nisenbaum et al In the mentioned studies, the highest share of costs was related to personnel costs (14,18). In contrast to the results of the present study, Mouseli et al calculated the total costs of laboratory services, reporting the costs of the consumed materials (37%) to be higher than the costs of human resources (36.3%) (15).…”

Section: Discussionsupporting

confidence: 91%

“…Among the cost elements, the least amount belonged to energy, with the highest cost related to the consumed power due to the frequent use of CT-scan devices. Mouseli et al also attributed the lowest share to this cost element (15). The defined drivers, number of the devices, area and number of the personnel of the units, and type of the costing method could also affect the total costs.…”

Section: Discussionmentioning

confidence: 99%

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The Calculation of the Costs of CT-scan Services at Shahid Rajaei Hospital in Qazvin, Iran Using the ABC Model and Comparison with the Tariff of the Iranian Ministry of Health

Kalhor

Norouzi

Kiaei

et al. 2020

Int J Health Life Sci

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Background: Cost analysis is an effective approach for planners and health system managers to address the issues regarding the increased shortage of resources. Activity-based costing (ABC) is a new system with various applications in daily service activities, the use of which is expanding for the estimation of real costs. Objectives: The present study aimed to calculate the total costs of CT-scan services in Shahid Rajaei Hospital of Qazvin, Iran using the ABC model and compared the results with the tariffs approved in 2016. Methods: This descriptive, applied research was conducted retrospectively. The total costs of CT-scan services were calculated using the ABC model and compared with the tariffs approved in 2016. Data were collected using checklists based on the hospital information system, observations, and interviews. Data analysis was performed in SPSS version 23 and Microsoft Excel software using the non-parametric Wilcoxon test. Results: The total costs of the CT-scan unit in the given year (2016 - 2017) was estimated at 398,380.07 dollars, with the largest share of the total costs in the human resources (57.9%), consumed materials (23.4%), and overhead (18.7%), respectively. No significant difference was observed between the total costs based on the ABC system and tariffs of these services. Conclusions: According to the results, the lack of a difference between the total costs and government tariffs suggested that earnings should be higher than the costs of these services, and these units could become profitable through proper cost control measures.

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Section: Discussionsupporting

confidence: 91%

Section: Discussionmentioning

confidence: 99%

The Calculation of the Costs of CT-scan Services at Shahid Rajaei Hospital in Qazvin, Iran Using the ABC Model and Comparison with the Tariff of the Iranian Ministry of Health

Kalhor

Norouzi

Kiaei

et al. 2020

Int J Health Life Sci

View full text Add to dashboard Cite

show abstract

“…Unit cost analysis is important to determine the actual cost of laboratory services so that it can be used to make decisions and project future financial planning. ABC method, in this case, can analyse more accurately the relationship between cost and activities compared to traditional method [4].…”

Section: Introductionmentioning

confidence: 99%

Unit Cost Analysis of Laboratory Services in Naili DBS Hospital in 2007 Using Activity Based Costing (ABC) Method

Oashttamadea¹,

Manjas²,

Yurniwati³

2019

Proceedings of the Proceedings of the 1st EAI International Conference on Medical and Health Research, ICoMHER November 13-14th

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Activity-based costing (ABC) is an accounting method that identifies and assigns costs to overhead activities. It provides more accurate information about cost so that the hospital can boost its financial efficiency and efficacy as stated in their strategic planning. Laboratoryisoneofthebusiestunitswhich has a big role for doctors in diagnostic procedures. This study aimed to elaborate the regulation and to examine the unit cost of laboratory services atNaili DBS Hospital in 2017 using the ABC method. This research was a mixed method study carried out in 2018. First, it was conducted by interviewing five informants regarding the hospital's unit cost regulation and then by calculating laboratory services' unit costs based on the ABC method. The qualitative study showed that Naili DBS Hospital determines their unit cost using traditional accounting system which has no control over their resource usage. On the other hand, the quantitative study showed that unit cost of routine blood count and clotting & bleeding time examinations were overcosted (by Rp45.389 and Rp33.904, respectively) and random blood sugar is undercosted (by Rp33.904). This study suggests that Naili DBS Hospital should evaluate their laboratory services' unit cost, review the use of their resources, and hold training about the ABC method.

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“…Nowadays, the number of laboratory tests and their requests have increased. The reasons are development of new laboratory equipment and the opportunity provided to physicians in making an appropriate diagnosis ( 3 , 6 ). These factors have led to an increase in laboratory costs ( 1 ).…”

Section: Introductionmentioning

confidence: 99%

Measuring the net profit of laboratory services: A case study in Iran

Mouseli¹,

Barouni

Amiresmaili

et al. 2018

Med. J. Islam. Republic Iran

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Background: Clinical laboratories need to manage resources properly and scientifically to survive in today's highly competitive environment. In this context, scientific-economic principles should be considered to determine the profitability or loss of laboratories. Thus, in this study, the net profit of laboratory services was measured based on scientific-economic principles. Methods: This was an applied research with descriptive-retrospective approach. A laboratory was selected from 61 laboratories of Kerman, Iran, which performed the highest number of tests among the laboratories of this city. In addition, due to easy access, it was the most visited laboratory by patients. The present study had 2 main phases: (1) measuring the price of services and (2) calculating the net profit of the studied laboratory. Data analysis was performed using activity- based costing (ABC) as an econometric model and Excel software. Results: The highest charges were related to direct costs (78.28%); consumable goods (47.26%) and professional and logistic human resources (46.31%) had the highest share of these costs. In the test groups, the most expensive tests belonged to the hormones (23.03%) and clinical chemistry (20.84%). Total cost, revenue, and the net profit of the studied laboratory were 641 645, 1 390 942, and 749 297 USD, respectively. After doing sensitivity analysis (50% increase in the frequency of tests), the following values were obtained: 987 071, 2 086 413, and 1 099 342, respectively. Conclusion: Some test groups in the studied laboratory were not profitable, and this was due to the high cost of these tests and illogical tariffs. One way to overcome this problem is to increase the frequency of laboratory tests.

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Cost-price estimation of clinical laboratory services based on activity-based costing: A case study from a developing country

Cited by 13 publications

References 9 publications

The Calculation of the Costs of CT-scan Services at Shahid Rajaei Hospital in Qazvin, Iran Using the ABC Model and Comparison with the Tariff of the Iranian Ministry of Health

The Calculation of the Costs of CT-scan Services at Shahid Rajaei Hospital in Qazvin, Iran Using the ABC Model and Comparison with the Tariff of the Iranian Ministry of Health

Unit Cost Analysis of Laboratory Services in Naili DBS Hospital in 2007 Using Activity Based Costing (ABC) Method

Measuring the net profit of laboratory services: A case study in Iran

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