...179 International Journal of Collaborative Research on Internal Medicine & Public Health Specifics of the Activity-Based Applications in Hospital Management Boris Popesko * Tomas Bata University in Zlin, Czech Republic * Corresponding Author; Email: popesko@fame.utb.cz Abstract Paper analyses the specifics of the application of Activity-Based Costing method in hospital management. Primary objective of the paper is to outline the methodology of the ABC application in hospitals. First part of the paper analyzes the ways of ABC implementation in published foreign studies. Second part describes the individual steps in ABC application and discusses the differences in the application procedures between the manufacturing and hospital organization. Key words: Healthcare Management, Cost Management, Activity-based costing, Introduction In the last decade, many non-profit and hospital organizations started to face difficulties and challenges in balancing limited resources and costs to provide their demand for services. Due to the introduction of modern medical techniques and medicines and consequent increase of consumed costs, many hospitals are under pressure to adopt more advanced cost management techniques usually utilized only in profit organization sector. Hospital managers frequently seek the advanced techniques, for better understanding of relations between the cost and provided services. One of the key factors of effective company management is ability of accurate...
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...Critically discuss: a) Why Cambridge Hospital Community Health Network embarked on the ABC study? There are two main reasons why the Cambridge Hospital Community Health Network (the Network) embarked on the Activity Based Costing (ABC) study. Firstly, the Network needed to gain a better understanding of its unit-of-service costs, which had been rising at a rate of 10% per year. In fact it had recently been rated the third-highest cost hospital in the state of Massachusetts. Being a high cost provider could make the Network uncompetitive for Medicaid and other public contracts. Secondly, the Network’s new operating budget required a $14 million reduction, which represented 15% of the total hospital network’s operating budget, in expenditures during the next two fiscal years. This was largely due to the downward pressure on hospital revenues by the government reform and managed care forced providers to cope with conditions that were constantly changing, while continuing to provide quality health care services in a time of intense competition. The Network's traditional method of analysing costs is the Medicare step-down costing system. It gave little information about the cost at the unit of service level. It gave only aggregate costing information (i.e. information about the departmental or global costs) but it does not provide the costs at the patient or procedure level that is needed in order to push cost reduction and also price their services competitively...
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...people and organizations. There are many tools that are used among the organizations that are classified as follows: 1. Cause Analysis Tools: includes Fishbone, Pareto, and Scattered Diagram. 2. Evaluation and Decision Making Tool: Decision Matrix, Multivoting. 3. Process Analysis Tool: includes Flow chart, Failure Mode Effects Analysis, Mistake-proofing and Spaghetti Diagram. 4. Data Collection and Analysis Tools: box and whisker plot, check sheet, control chart, Design of experiments, Histogram, Scatter Diagram, Stratification, and Survey. 5. Idea Creation Tools: Affinity Diagram, Benchmarking, Brainstorming, Nominal Group Technique. 6. Project Planning and Implementation Tool: Gantt Chart, Plan-Do-Check-Act (PDCA) Cycle or Plan-Do-Study-Act (PDSA) Cycle. 7. Seven New Management and Planning Tools: Affinity Diagram, Relations Diagram, Tree Diagram, Matrix Diagram, Matrix Data Analysis, Arrow Diagram, Process Decision Program Chart. Quality tools & techniques use statistical knowledge to accumulate data and analyze them. It serves diverse range of medical, computing, industrial, telecommunications and defense. These tools drive improvement throughout the organization. Employee has to at all levels has to master the fundamental Quality skills and advanced Quality tools. This is critical to improve the organization process. These tools helps to improve company’s business management, organization’s performance and increase the global recognition of the company so it would...
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... 1 2 2 2 Assumptions Processes of Manufacturing Beer DEPARTMENT ONE: STAGE 1 - MIXING DEPARTMENT ONE: STAGE 2 - BREWING DEPARTMENT TWO: PACKAGING 3 4 4 4 5 Process Costing DETERMINING FIGURES CALCULATING COST PER EU 6 7 8 Cost Reconciliation Recommendations CAPPING & LABELLING BOTTLES & UTILITIES TRANSPORTATION 9 10 10 11 11 Introduction of Outpatient Business Costing Technique Chosen ACTIVITY BASED COSTING (ABC) JUSTIFICATION 12 12 12 12 Assumptions List of Activities and Cost Drivers Traditional Costing COMPARE AND CONTRAST WITH ABC UNDER ABC METHOD UNDER TRADITIONAL COSTING METHOD 13 13 14 14 16 16 Recommendations Conclusion Learning Points Reflections Bibliography Appendix 1 (Heineken) Appendix 2 (SATA CommHealth) 18 20 21 23 24 25 27 ACCT102 Management Accounting ! G8, Group 5 EXECUTIVE SUMMARY ! Our project aims to apply costs concepts in the beer manufacturing and hospital service industry. The companies we will be using for our case studies will be Heineken and SATA CommHealth. We will seek to identify the most suitable cost concept for each industry to allow for better internal decision making purposes. Various costing methods, namely, Activity-Based Costing and Process Costing, will be used to analyse the business models of these companies in the aforementioned industries. Following from our analysis and diagnosis of each company, we will recommend...
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...Wk3 case study 1. In your opinion, is there an opportunity for improvement in this system? Why or why not? a. The ABC system seems to be an improvement to the XYZ system so I don’t believe that ABC system could be improved much; what should be improved upon is the education for the ABC system in the department of nursing. 2. If there is room for improvement, is a PI team appropriate in this context? a. Yes, I believe that there is room for improvement and since there is some friction, having a PI team would be appropriate to help determine a long term solutions in fixing the lack of communication/knowledge between nursing and administration. I believe that not all facts are there in order for it to be considered a blitz team. 3. For your knowledge of hospital organizational structure, who should be on the PI team? a. At least one manager from each department and staff that have knowledge of the PI team system 4. What departments should be represented? a. Nursing, admitting and patient accounting, administration departments and IS. 5. What staff position would include? What is your rationale for including each individual? a. I would include one manager from each department, and then some supporting staff who use the ABC system such as the nurse and admissions clerk. The nursing manager and staff are selected because they are actively are using the ABC system and the problem aroused from both the nursing and admitting departments. I would also include the administration dep. Because...
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...internal organization. In this context, new cost management information that provides better understanding and helps managing increasingly turbulent and complex production processes is needed. Activity-based costing (ABC) has been suggested as the leading contender method to replace traditional cost accounting systems, due to its capability to make the processes and activities performed in the organization more transparent and observable. This paper reports the main results of a research project which aimed to develop a cost accounting system capable of providing useful information to manage production processes in construction and devise a model that integrates this system to the Production Planning and Control process, based on the new operations management paradigm and on the ABC ideas. The study involved three case studies, a series of interviews with construction managers and the development of prototype software. The main conclusions of this research work are that the cost information provided by the proposed management accounting system (a) makes the production processes more transparent; (b) helps to identify production inefficiencies; (c) encourages managers to introduce corrective actions; and (d) allows the evaluation of corrective actions to be undertaken. The study also indicated that the proposed model has contributed to establish systematic procedures for production control concerned not only with time management but also with cost management. KEY WORDS Cost management...
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...Chapter 5 Activity-Based Costing and Customer Profitability Analysis Cases |5-1 |Blue Ridge Manufacturing (Activity-Based Costing for Marketing Channels) | |5-2 |Columbo Soft-Serve Frozen Yogurt: Using Activity Based Costing To Assess Channel/Customer Profitability | |5-3 |Wilson Electronics (A) | |5-4 |Wilson Electronics (B) | |5-5 |The Buckeye National Bank (ABC Costing in the Service Sector) | |5-6 |Precision Paint | |5-7 |Forest Hill Paper Company | | | | Readings 5-1: “Activity-Based Costing and Predatory Pricing: The Case of the Petroleum Retail Industry” by Thomas L Burton and John B MacArthur, Management Accounting Quarterly, (Spring 2003). The assignment of indirect costs in a volume-based costing system can lead to product-cost subsidization—overcost high-volume products and undercost low-volume...
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...Introduction Many studies although differ from one another indicates that one of the factors that prevents the safety and acquisition of full potential of a student is school violence. School violence is the name given to the violence occurring in school that includes issues like bullying, gangs, violence between the school children and physical harm by school students to the teachers and staffs. One of the causes of school violence in the Philippines is the Filipino’s value of “pakikisama” which occur in school environment when a student in the act being united with their peers is pressured to do the same violent behavior as their peers that causes violence against their other classmates. It starts with “pakikisalamuha” or act of mixing in which they acquire the same violent trait their peers possesses, then “pakikilahok” or act of joining in which they manifest the same violent actions that their friends do such as bullying others then “pakikibagay” or act of conformity with their peers in which they acquire the negative behavior of their friends. Bullying is one of the major causes for violence in school. With the help of power, students go off their limits to seek fun. This 5 minutes fun can be dangerous if done in wrong sense. Before this so called New Millennium and Computer Age came, school was considered to be safe but due to this school violence they no longer remain a safe place. Though the cases of violence are quite rare but still a check is required. It is a world...
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...Africa) Activity based costing (ABC) in the public sector: benefits and challenges Abstract Peter Drucker (1986), in “Management: Tasks, responsibilities, and practices” states that business enterprises and public-service institutions, are organs of society which do not exist for their own sake, but to fulfil a specific social purpose and to satisfy need of society, community, or individual. To achieve the above objectives, managers of these institutions must plan, control and make decisions about the resources entrusted to their care. A key element of efficient organizational decision making is to use reliable information, both operational and managerial accounting data for analysis and decision support. This can be achieved by using activity-based costing (ABC) method. The underlying premise of ABC is that resources are consumed by activities to produce outputs or products and services (US General Services Administration, 2006). It focuses on the allocation of indirect costs to products and services, which was traditionally done on arbitrary basis. ABC is useful in two situations: areas with large and growing indirect and support costs (Krumwiede, 1998a; Becker, Bergener and Räckers, 2010), and areas with a large variety in products, customers and processes (Cooper, 1988a, 1988b; Groot, 1999). The unique characteristic of public sector organizations as overhead-intensive service entities, therefore, is amenable to the use of ABC methodology (Becker, Bergener, and...
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...Source: http://www.allbusiness.com/accounting-reporting/methods-standards-cost-accounting/498244-1.html#ixzz1nMWBS5qI By Juras, Paul E. ABSTRACT Descriptions of activity-based-costing (ABC) systems have become a standard part of managerial accounting texts. While ABC implementation issues are the focus of a number of articles, these issues are often not addressed in a typical textbook. This case is designed to familiarize you with the behavioral and technical variables that can aid or impede successful ABC implementation. Anderson's (1995) factor-stage model provides a template to organize the discussion of ABC success factors. In this case, you will be cast in the role of a business consultant. You are asked to synthesize the case study's key "change management" insights into a report that could be shared with co-workers in an intranet-based knowledge management system. In addition, you may be expected to prepare a formal presentation of the report for your peers. Implementing change in an organization is about ninety percent cultural and ten percent technical. This is because the organization dynamics, politics, and search for a champion that go on are the real issues that make or break the project. One of the reasons we were able to implement ABC successfully was because the right people became champions. Chris Richards, Director of MIS, Global Electronics, Inc. BACKGROUND Global Electronics, Inc. (GEI), headquartered in Sarasota, Florida, designs, manufactures...
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...Technology and Health Care Raising the ordinary to extraordinary, PrimeConnect is one of the top EMR (electronic medical record) software solution companies within the industry. Using various platforms, EMRs enable providers, hospitals, physician offices and patients to connect anytime and anywhere. PrimeConnect allows physician offices, hospitals and providers to comply with Meaningful Use requirements while increasing productivity and enhancing cash flow and revenue. PrimeConnect offers a full suite of services including: PrimePen, a digital pen that can easily transfer data directly to the EMR; PrimeConnect Mobile, a cellular phone app allowing access to records anytime and anywhere; PrimeConnect E-prescribing, a unique way to capture patient allergies, drug interaction and the capability of easily prescribing and refilling patient prescriptions electronically; and finally, PrimeConnect ProHealth, “an integrated, protocol-based communications, patient engagement, and measurement solution that empowers providers to succeed in every aspect of collaborative care” (NextGen, 2013). Quality of Care “When health care providers have access to complete and accurate information, patients receive better medical care. Electronic health records (EHRs) can improve the ability to diagnose diseases and reduce—even prevent—medical errors, improving patient outcomes” (HealthIT.gov, 2013, para. 1). PrimeConnect ensures that providers have reliable access to patient records anytime and anywhere...
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...Darrell Woodfork BSHS/311- Models of Effective Helping Instructor: Michael Phillips Date: 8/5/2013 Site Visit Essay Paper Site Visit Essay Paper Cognitive behavioral techniques are used during a counseling session in a hospital or office setting by therapist. Although I was unable to do a current Site visit to a human service department of a company to write my report, I do know from my own experience some things pertaining to programs that employ behavioral or genitive intervention and or models. In this paper I will attempt to explore some areas within a cognitive intervention such as: • What population participates in the program? • Who presents the program? • How the effectiveness of the intervention is measured • How do they determine a need for the program? • Do they have plans for other programs that use behavioral models and techniques? • What other models and theories are represented in their programs. As we look into the population of participants, it ranges based on the type of behavior being addressed, intervention and motivation strategies. Last year, when I attended my counseling session, it was held in a group session with different people of all ages. This particular group session addressed issues of anxiety and depression. I quickly learned that many people have issues with anxiety and depression, yet they are hesitant to get counseling to change the behavior. Although...
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...Institute for Development Studies A Study of Philippine Hospital Management Administrative Systems Fred Avestruz DISCUSSION PAPER SERIES NO. 95-16 The PIDS Discussion Paper Series constitutes studies that are preliminary and subject to further revisions. They are being circulated in a limited number of copies only for purposes of soliciting comments and suggestions for further refinements. The studies under the Series are unedited and unreviewed. The views and opinions expressed are those of the author(s) and do not necessarily reflect those of the Institute. Not for quotation without permission from the author(s) and the Institute. June 1995 For comments, suggestions or further inquiries please contact: The Research Information Staff, Philippine Institute for Development Studies 3rd Floor, NEDA sa Makati Building, 106 Amorsolo Street, Legaspi Village, Makati City, Philippines Tel Nos: 8924059 and 8935705; Fax No: 8939589; E-mail: publications@pidsnet.pids.gov.ph Or visit our website at http://www.pids.gov.ph A STUDY OF PHILIPPINE HOSPITAL MANAGEMENT AND ADMINISTRATIVE SYSTEMS PIDS Project No. DOH / 91-92 / 05 (Final Report) October 30, 1994 Fred S. Avestruz, MBA, Ph.D. Asian Institute of Management TABLE OF CONTENTS Chapter 1 Page INTRODUCTION ........................................................ 1 1.1 Objectives of the Study .................................................. 1 1.2 Conceptual Framework of Hospital Management .................
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...supplier of medical hardware and consumables to the hospitals, the doctors and the clinics. The normal orders are dispatched by the Brussels Hub of DHL. The variety of the product range from medical scrubs to medical kits. The Company’s turnover growth was 25 per cent to 120 million euros. The case study is about managing the inventory levels of the company. Problem: Root Cause Analysis: Explanation of the Excel Sheet: * The column A stands for the sample number * The column B stands for the Catalogue Reference Number * The Column C stands for the sales Unit Cost sales * The column D stands for the annual Sales * The Column E stands for the total cost of the per unit item which is calculated by multiplying sales unit cost into yearly sales. SP stands for total cost. * The Column F stands for the demands per week which is calculated by the division of last 12 month sales by 52 weeks * The Column G stands for the whole number. * The column H stands for the Reorder units * The column I stands for inventory in last year end * The column J stands for total inventory which is an addition of reorder units and inventory in year end * The column K determines the stock cover for every item * The column L stands for stock turn * The column M stands for stock for 52 weeks * The column N stands for stock week for 10 weeks * The column O and the column P shows the ABC analysis * The column Q determines the EOQ...
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...Issue description: “The social organisation of health care, concerns the way a particular society organises. funds, and utilises its health services. A central focus on the dominant role of the medical profession, which has significantly shaped health policy and health funding to benefit its own interests” (Germov 2009, pg 18-19 para 5) Doctors who support the medical profession for private health insurance benefit by maximising their profits with the “No Gap” incentive that private health insurance offers to their clients, Doctors are being encouraged to charge more then the scheduled fee however based on the marxism theory only those who can afford private health insurance benefit from such services. Low income workers are limited to health care options due to the rise in household bills, making private health insurance difficult to afford. In private health doctors are able to charge their patients their own fee for services/medical consultations etc. Medicare will pay 75% which is known as the “schedule fee” , private health insurance will cover the 25% gap. However the AMA actually encourage doctors to charge more then schedule fee, allowing the doctors to make profit by those who can afford to pay for these consultations. Until recently private health insurance companies were restricted by law to cover the “gap” fee making the patient having to pay the 25% out of pocket. Now every health fund must offer at least one “no gap” or “known gap” policy. Gap cover is only...
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