A New Costing System in Hospital Management: Time-Driven Activity Based Costing: A Narrative Review
Journal Title: Evidence Based Health Policy, Management & Economics - Year 2018, Vol 2, Issue 2
Abstract
Background: Changes in the hospital environment, technology, and service delivery as well as the increased share of overhead costs have motivated hospital managers to look for useful means of calculating costs. A key element of the health system success is the accurate computation of costs. Determining the exact costs enables managers and policymakers to make proper decisions with regard to optimal allocation of resources. This study explores the results of the activity-based costing model (ABC) and time-driven activity-based costing model (TDABC) in calculating the cost of diagnostic departments in hospitals. Methods: This was a narrative literature review paper. The data was gathered from the earliest documented scientific English and Persian articles, up to 2016, as well as relevant books based on keywords such as Activity Based Costing, Time-Driven Activity Based Costing and hospitals. Finally, a total of 543 studies were obtained after searching, then, to collect the relevant articles, the researchers considered a clear explanation of each part of articles about costing. Results: The results showed that the ABC system was unable to account for new issues, which is the reason researchers presented the new TDABC method. Some advantages of this system are its simple and updatable system, its usability in large and small companies for both simple and complex processes, economic evaluation of activities and performance assessment. Conclusion: The successful implementation of the TDABC model would provide an accurate cost report for goods and services, helping managers to evaluate the performance of diagnostic departments.
Authors and Affiliations
Sina Etemadi, Behzad Mohammadi, Mohammad Javad Akbarian Bafghi, Marjan Hedayati Poor, Mohammad Tasavon Gholamhoseini
Keywords
Related Articles
- EP ID EP329691
- DOI -
- Views 132
- Downloads 1
Shaping the Health and Foreign Policy Framework; Lessons Learned for Global Health Diplomacy in Iran
Background: Today, peace and stability of health diplomacy in the Eastern Mediterranean region is faced with many challenges. In spite of extensive ignorance on health consequences in other fields and priorities of forei...
Smoking Prevention Programs Based on Schools Health Profile in the Viewpoint of School Administrators and Health Educators of Tabriz
Background: Smoking is a global issue, Iran as one of the youngest contemporary societies, is involved in this dilemma. Therefore, this study was conducted with the aim of studying the implementation of programs and poli...
Insurance Deductions in Patients’ Bills: A Case Study on Tamin Ejtemaei Insurance in Iran
Background: Insurance deductions are not only caused to failure to achieve the paid costs from the provided services but also are caused to the inefficiency of hospitals. So, this research was conducted to determine the...
Explicit Priority Setting Approaches in Health Care Coverage Policies: A Critical Review and Implications for Further Research
Background: Several explicit approaches are used to make decision on health services coverage and to develop the basic health package. In this study, first the approaches used to prioritize health services were introduce...
Developing a Hospital Managerial Performance Assessment Tool in Iran
Background: Performance assessment tries to find the best, valid and cost-effective way of measuring performance and work satisfaction. There are several indicators for health systems performance evaluation which ignore...