PubMed · 2004 · 55 citations · 0 references
Health ProfessionsHealth Care ManagementHealth Services AdministrationCost AccountingHealth Care FinanceHealthcare AdministrationActivity-based CostingHealth Care CostsHealth Care Expenditure AnalysisHealthcare Cost AccountingHealthcare Cost AnalysisHealthcare Financial ManagementActivity CostingActivity-based Costing In HealthcareHealth Care Cost ManagementHealth Care CostingHealth Care EconomicsHealth OperationsHealthcare Cost ManagementPerformance Improvement Planning
The evolution of health care created a climate in which cost was subordinate to medical treatment. Current reimbursement constraints have increased the need for providers to be cost conscious, but they have discovered that current accounting practices do not provide the appropriate information to determine the cost of service or make decisions. This article argues that activity-based costing (ABC) can bridge the gap between the medical and financial communities and provide a foundation for performance improvement.