A Comparison of Activity-Based Costing and Time-Driven Activity-Based Costing

Hoozée, Sophie; Hansen, Stephen C.

doi:10.2139/ssrn.2489118

Cited by 3 publications

(1 citation statement)

References 9 publications

(7 reference statements)

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“…Resources are allocated based on capacity cost rates and process time. 14 , 15 The authors identified cost centers along the chain of medical care including the administration process (for registration) and the clinical process (for care). Costs were allocated based on the consumption of resources over time, which led to the conclusion that the longer a resource is used, the greater its cost.…”

Section: Methodsmentioning

confidence: 99%

The Economics of an Admissions Holding Unit

Schreyer

Martin

2017

WestJEM

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IntroductionWith increasing attention to the actual cost of delivering care, return-on-investment calculations take on new significance. Boarded patients in the emergency department (ED) are harmful to clinical care and have significant financial opportunity costs. We hypothesize that investment in an admissions holding unit for admitted ED patients not only captures opportunity cost but also significantly lowers direct cost of care.MethodsThis was a three-phase study at a busy urban teaching center with significant walkout rate. We first determined the true cost of maintaining a staffed ED bed for one patient-hour and compared it to alternative settings. The opportunity cost for patients leaving without being seen was then conservatively estimated. Lastly, a convenience sample of admitted patients boarding in the ED was observed continuously from one hour after decision-to-admit until physical departure from the ED to capture a record of every interaction with a nurse or physician.ResultsPersonnel costs per patient bed-hour were $58.20 for the ED, $24.80 for an inpatient floor, $19.20 for the inpatient observation unit, and $10.40 for an admissions holding area. An eight-bed holding unit operating at practical capacity would free 57.4 hours of bed space in the ED and allow treatment of 20 additional patients. This could yield increased revenues of $27,796 per day and capture opportunity cost of $6.09 million over 219 days, in return for extra staffing costs of $218,650. Analysis of resources used for boarded patients was determined by continuous observation of a convenience sample of ED-boarded patients, which found near-zero interactions with both nursing and physicians during the boarding interval.ConclusionResource expense per ED bed-hour is more than twice that in non-critical care inpatient units. Despite the high cost of available resources, boarded non-critical patients receive virtually no nursing or physician attention. An admissions holding unit is remarkably effective in avoiding the mismatch of the low-needs patients in high-cost care venues. Return on investment is enormous, but this assumes existing clinical space for this unit.

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Section: Methodsmentioning

confidence: 99%

The Economics of an Admissions Holding Unit

Schreyer

Martin

2017

WestJEM

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A Case Study on Detecting Error-Structures in Costing Systems

Lueg

Morratz

2017

SSRN Journal

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Usage of Customer Profitability Management Tools on the Textile Market of Bosnia and Herzegovina

Lalic

Stević

Tešić

2018

Fibres and Textiles in Eastern Europe

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The modern market puts new demands on companies in terms of customer segmentation and relations with them. Companies facing the pressure of globalisation must adopt new views in the domain of adaptation of all functions in the company, which have a trend of integration, including the function of marketing and that of accounting. One of the results of the integration of company functions is, among others, the concept of customer profitability management. The subject of this paper is analysis of the profitability management tools of domestic companies operating on the textile market of Bosnia and Herzegovina. The aim of the paper is to point out the necessity of applying customer profitability management tools as one of the ways that companies adapt better to changes that occur on the textile market of Bosnia and Herzegovina. The methods used in this paper are analysis, synthesis, and generalisation in the part related to the literature review. Statistical methods are used for analysis of data collected on the basis of research conducted on a simple random sample of domestic companies operating on the textile market of Bosnia and Herzegovina.

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A Comparison of Activity-Based Costing and Time-Driven Activity-Based Costing

Cited by 3 publications

References 9 publications

The Economics of an Admissions Holding Unit

The Economics of an Admissions Holding Unit

A Case Study on Detecting Error-Structures in Costing Systems

Usage of Customer Profitability Management Tools on the Textile Market of Bosnia and Herzegovina

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