Health ProfessionsHealth Care ManagementHealth Services AdministrationHealthcare AdministrationHealthcare EconomicsHealthcare FinanceActivity-based CostingCost Data CollectionExpense AnalysisHealth Care CostsHealthcare Cost AccountingHealthcare Cost AnalysisActivity CostingActivity-based Costing In HealthcareFinancial Performance ManagementFinancial Performance ReportingHealth Care CostingHealthcare Cost ManagementHealthcare Expenditure AnalysisMedical Cost Analysis
Activity-based costing (ABC) focuses on processes that drive cost. By tracing healthcare activities back to events that generate cost, a more accurate measurement of financial performance is possible. This article uses ABC principles and techniques to determine costs associated with the x-ray process in a midsized outpatient clinic. The article also provides several tips for initiating an ABC cost system for an entire healthcare organization.