Cost Accounting as a Possible Solution for Financial Sustainability of Croatian Public Hospitals

Abstract

The purpose of this paper is to present the current usage of cost accounting methodology in Croatian public hospitals through conducted empirical research and to provide opinions of accountants and financial officers regarding possible implementation of cost accounting methodology in public hospitals.In the paper, the authors analyze the accounting system in Croatian public hospitals, identifying the flaws of the current accounting system with regard to the recording and allocation of costs. National healthcare systems of different European countries provide a theoretical background for the usage of accrual accounting basis and cost accounting methodologies, showing better governance and financial sustainability of public hospitals which have introduced cost accounting methodology. The conducted empirical research shows that accountants and financial officers believe that the healthcare system in Croatia is ready for a change in the current accounting system based on the modified accrual Croatian Economic Survey : Vol. 18 : No. 2 : December 2016 : pp. 5-38 basis through the implementation of accrual accounting basis and full costing approach to cost allocation. Full costing approach is also known as activity-based accounting method for cost allocation. The authors also recommend some initial steps for implementation of the new cost accounting system in Croatian public hospitals. Ivana Dražić Lutilsky

Constraints and stimuli in the implementation of public accounting reform: systematic literature review and future research agenda

“…Limitations of information technologies (IT). Lack of technical support as an obstacle to implementing an accounting system is notable, especially the lack of an IT system (Bruno and Lapsley, 2018; Gigli et al , 2018; Hladika, 2022; Jorge et al , 2019; Lutilsky et al , 2016; Scheers et al , 2006; Venieris and Cohen, 2004) in both developed and developing countries. For instance, Caruana (2017) found that there was an insufficient allocation of funds for the acquisition of the new IT system, resulting in a strong barrier to the implementation of the accounting reform in Malta.…”

“…The adoption of new accounting standards requires resources such as investments in IT systems. Lutilsky et al (2016) identified that the greatest constraint to the implementation of the accrual accounting basis is political support and IT support. Scheers et al (2006) sought to determine whether the information technology system has caused problems in Australia and the UK.…”

Implementation of cost accounting as the economic pillar of management accounting systems in public hospitals – the case of Slovenia and Croatia

“…Since operationalisation of the NPM concept started much later in the CEE than in Western European countries, the developing countries and CEEC are much less represented (Duhovnik, 2007;Hassan, 2005;Naranjo-Gil, 2004;van Helden & Uddin, 2016) in the literature, especially Slovenia and Croatia (Albreht et al, 2009;Dimitri c, Skalamera-Alilovi c, & Duhovnik, 2016;Farka s, 2017;Lutilsky, Zmuk, & Dragija, 2016;Va si cek et al, 2016). There is a limited scope of the literature focusing mainly on MASs and its characteristics in relation to RBV, although the research of MAS, is more frequent and systematic.…”

Intrinsic Value Dari Pelaporan Keanekaragaman Hayati

“…Konsep ini mengakui pentingnya kesalingterhubungan manusia dengan yang lainnya, tidak sebatas pada hubungan antarmanusia, tetapi juga dengan semua hal yang hidup, termasuk dengan tanah (Lutilsky, Žmuk, & Dragija, 2016;Velte & Stawinoga, 2017). ANTAM mengakui adanya hubu ngan dengan alam sekitar dan tanah "ANTAM menyadari bahwa setiap daerah operasi memiliki keunikan, kebutuhan, dan aset sosial, ekonomi, dan budaya yang berbeda-beda sehingga memerlukan pendekatan serta program CSR yang berbeda" (PT ANTAM, 2015:74).…”