Radiology Service Tariff Calculation Model Using the Activity Based Costing (ABC) Method at Naibonat Regional Hospital, Kupang Regency (original) (raw)
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Jurnal Sains Kesihatan Malaysia, 2018
Presently there is a gross lack of information on cost and cost weights in many developing countries that implement casemix system. Furthermore, studies that employed Activity Based Costing method (ABC) to estimate the costs of radiology procedures were rarely done in developing countries, including Malaysia. The main objective of this study is to determine the costs of radiology procedures for each group in casemix system, in order to develop cost weights to be used in the implementation of the casemix system. An economic evaluation study was conducted in all units in the Department of Radiology in the first teaching hospital using the casemix system in Malaysia. From the 25,754 cases, 16,173 (62.8%) of them were from medical discipline. Low One Third and High One Third (L3H3) method was employed to trim the outlier cases. Output from the trimming, 15,387 cases were included in the study. The results revealed that the total inpatients' charges of all the radiology procedures was RM1,820,533.00 while the cost imputed using ABC method was RM2,970,505.54. The biggest cost component were human resources in Radiology Unit (Mobile) (57.5%), consumables (78.5%) of Endovascular Interventional Radiology (EIR) Unit, equipment (81.4%) of Magnetic Resonance Imaging (MRI) Unit, reagents (68.1%) of Medical Nuclear Unit. The one highest radiology cost weight, was for Malaysia Diagnosis Related Group (MY-DRG ®) B-4-11-II (Hepatobiliary and Pancreas Neoplasms with severity level II, 2.8301). The method of calculation of the cost of procedures need to be revised by the hospital as findings from this study showed that the cost imposed to patient is lower than the actual cost.
Objective (s): Due to rapid growth in health care expenditures in recent decades, finding new methods to control costs seems necessary. As such activity based costing (ABC) is one of the new costing methods that increasingly used by managers. This method will help managers to better control costs. This study aimed to investigate the possibility of using activity-based costing system in a specified range of imaging services (radiology and sonography) in centers under the contract of Iran Health Insurance Organization. Methods: This was a multi-phase study so different methods were used. First a review of the literature on the topic was carried out. Then related centers (public and private) were selected randomly. The study population was hospitals and radiology centers under the contract of Iran health insurance organization in Tehran, Iran.. Data was collected by system observation, review of documents and interview by system experts. Results: The centers were classified into 3 grou...
The Pan African medical journal, 2012
Activity based costing (ABC) is an approach to get insight of true costs and to solve accounting problems. It provides more accurate information on product cost than conventional accounting system. The purpose of this study was to identify detailed resource consumption for chest x-ray procedure. Human resource cost was calculated by multiplying the mean time spent by employees doing specific activity to their per-minute salaries. The costs of consumables and clinical equipments were obtained from the procurement section of the Radiology Department. The cost of the building was calculated by multiplying the area of space used by the chest X-ray facility with the unit cost of public building department. Moreover, straight-line deprecation with a discount rate of 3% was assumed for calculation of equivalent annual costs for building and machines. Cost of electricity was calculated by multiplying number of kilo watts used by electrical appliance in the year 2010 with electricity tariff ...
Analysis of Activity Based Costing Method as the Basis Determination of Hospital Services Rates
The aim of this study is to get the accuracy of determining hospital rates. This study,which is Hospital X at the city of Batam, Indonesia uses a comparative descriptive analysis method with qualitative and quantitative approaches. Cost Drivers used in this study as a cost grouping are the number of inpatient days, the number of inpatients, and floor area. The results of inpatient service calculation based on the activity based costing system at the Hospital obtained a difference for the VIP class of IDR 459,646.68 and a difference for the class I of IDR 213,252.30 where the rate set by the Hospital was higher than it should be (over value). While the difference for class II is IDR 169.50 and the difference for class III is IDR 74,088.22 where the rate set by the hospital is lower than it should be (under value).
Cost Analysis of MRI Services in Iran: An Application of Activity Based Costing Technique
Iranian Journal of Radiology, 2015
Background: Considerable development of MRI technology in diagnostic imaging, high cost of MRI technology and controversial issues concerning official charges (tariffs) have been the main motivations to define and implement this study. Objectives: The present study aimed to calculate the unit-cost of MRI services using activity-based costing (ABC) as a modern cost accounting system and to fairly compare calculated unit-costs with official charges (tariffs).
Journal of Evolution of Medical and Dental Sciences, 2017
BACKGROUND Escalating healthcare cost is a challenge in public health sector for financial manager. Choosing an appropriate accounting method is necessary for cost containment. In present study, we applied the time driven activity-based costing method to assess the cost in performing a computed tomography in a teaching hospital. The objectives of this study are: 1) To describe the application of Time Driven Activity-Based Costing (TDABC) to Computed Tomography (CT) scanning unit; 2) To obtain the cost of unused capacity of personnel and idle time cost of CT scanner; and 3) To appraise the evidence of benefits of such tools in health sector and its efficiency. MATERIALS AND METHODS The prospective and cross-sectional study was conducted to obtain data. We utilised the process mapping, time motion study and activity-based costing. The labour cost, machine hour cost, material cost and overhead cost were estimated. Capacity cost rate was calculated. The final costs of each type of CT procedure were obtained by summing up each cost components. Unused capacity cost and idle time cost were calculated. RESULTS The component costs of a CT scan study were as follows: The machine hour cost (42.87%) comprises of the highest share for the CT brain and other costs are in descending order, direct labour cost (20.73%), direct material cost (14.69%), batch level cost (13.01%), facility level cost (4.81%) and sustaining level cost (3.89%). For CT brain contrast the direct material cost (41.13%) comprises of the highest share and other costs are in descending order, machine hour cost (28.15%), direct labour cost (15.44%), batch level cost (9.56%), facility level cost (3.16%) and sustaining level cost (2.56%). The unused capacity or idle time cost of the radiologist was Rs. 64812.80 and resident doctor's cost was Rs. 31684.80. The idle time cost of CT scanner was Rs. 50,05,560. CONCLUSION Time-driven activity-based costing allows detailed understanding of costs of all resources and precision of cost rate per minute. It provides valuable insights into process variability, resource utilisation, unused capacity and idle time cost. It provides potential opportunities for cost containment and efficiency in the utilisation of CT service.
Cost Centric Data Mining for Radiology Procedures at Teaching Hospital in Malaysia
Mehran University Research Journal of Engineering and Technology, 2020
This study explored radiology procedure' cost across available units in the Radiology's Department UKMMC (University Kebangsaan Malaysia Medical Centre). In 2011, the total number of radiology procedures carried out in this department was 121,221. Nevertheless, the estimating expenses of offering these procedures are not known. An economic evaluation study was employed and cost centric data mining based on costing activity method was used to determine the charge of the procedure in every centre. Information on seven cost parameters was collected for each procedure: human resources, consumables, equipment, reagents, administration, maintenance and utilities. The results of the study show that the highest percentage of cost parameter for the human resource was Radiology (Mobile) 57.5%, the highest percentage of cost parameter for consumables and reagent was EIR (Endovascular International Radiology) Unit 75.8% and Medical Nuclear Unit 68.1% was the highest percentage of cost parameter for reagent. The MRI (Magnetic Resonance Imaging) Unit 81.4% was the highest cost parameter for equipment. The most top mean cost procedures were EIR MYR4330 and it was revealed that procedures with the highest difference ratio were procedures in EIR (18.50). Finding of this study is very useful to UKMMC management since it helps to enhance the efficiency of services and reduce unnecessary radiology procedures in patients' management.
The Application of Activity Based Costing Model to Calculates The Unit Cost Services In a Hospital
2021
For welcoming the era of Universal Coverage in 2019, Indonesia has encouraged hospitals to be able to determine their service costs properly without being distorted, as happened in traditional costing models. This study aims to examine service costs in hospitals based on the Activity Based Costing method. The accurate calculation of the costs will encourage fair tariffs for patients and other payers, such as BPJS or other health insurance. The results of this study show that the service costs in the ORIF surgery of Femoral Shaft Fracture based on the calculation of the unit cost using the ABC method are about 10% lower than that based on the traditional hospital's costing method. This study concludes that the ABC method provides a fairer calculation of service costs for patients, according to facilities, processes (treatment activities), and the use of resources during the treatment. Since this ABC method eliminates useless activities that can trigger more costs, effectiveness and efficiency can be achieved to support the cost control and quality control in hospitals.
Jurnal Medicoeticolegal dan Manajemen Rumah Sakit, 2018
The purpose of this study was to calculate unit cost coronary angiography with the ABC method and analyze the differences in the results of the calculation unit cost of the ABC method with the current rates at RSUP Dr. Sardjito Yogyakarta. The research method is qualitative with a descriptive design case study, this study uses primary data and secondary data. Primary data is in the form of interviews, while secondary data is obtained through financial data in 2016. Methods for analyzing costs using the method of Activity Based Costing (ABC). The study resulted that coronary angiography-guided by the SPO, the results of the calculation unit cost of the ABC method were Rp7.927.171,13 higher than the current fare. The unit cost of coronary angiography at RSUP Dr. Sardjito Yogyakarta by the ABC method is a unit cost for coronary angiography without difficulty which is calculated by charging all costs both direct costs and costs overhead. Hospital rates have not been recalculated since 2014, so it has not yet described the real conditions in 2016. In addition, personnel expenditure conditions that exceed the provisions of the proportion of a maximum of 44% as mandated in the Republic of Indonesia Minister of Health Regulation are the factors causing higher unit cost calculation ABC method rather than rates coronary-angiography hospital. Tujuan penelitian ini adalah menghitung unit cost coronaryangiography dengan metode ABC dan menganalisis perbedaan hasil perhitungan unit cost metode ABC dengan tarif saat ini di RSUP Dr. Sardjito Yogyakarta. Metode penelitian adalah kualitatif dengan rancangan deskriptif studi kasus, Penelitian ini menggunakan data primer dan data sekunder. Data primer berupa hasil wawancara, sedangkan data sekunder diperoleh melalui data keuangan tahun 2016. Metode untuk menganalisis biaya menggunakan metode Activity Based Costing (ABC). Penelitian menghasilkan bahwa tindakan coronaryangiography berpedoman pada SPO hasil perhitungan unit cost metode ABC sebesar Rp7.927.171,13 lebih tinggi dari tarif saat ini. Unit cost tindakan coronaryangiography di RSUP Dr. Sardjito Yogyakarta dengan metode ABC merupakan unit cost atas tindakan coronaryangiography tanpa penyulitan yang dihitung dengan membebankan seluruh biaya baik biaya langsung maupun biaya overhead. Tarif rumah sakit sejak ditetapkan pada tahun 2014 belum dilakukan perhitungan ulang, sehingga belum menggambarkan kondisi riil tahun 2016. Selain itu kondisi belanja pegawai yang melebihi ketentuan batas proporsi maksimal 44% sebagaimana diamanatkan dalam Peraturan Menteri Kesehatan RI menjadi faktor penyebab lebih tingginya hasil perhitungan unit cost metode ABC daripada tarif coronaryangiography rumah sakit.
Archives of Business Research, 2017
The purpose of this study is to determine whether the application of activity-based costing system can show a more accurate resource allocation at Royal Hospital Surabaya. As well as a comparison tool with operating rates that has been established so far, especially in its application to a hospital that its orientation two goals that is community service and profit balance. This research was conducted at Royal Hospital Surabaya. The method used is descriptive method that is calculate the tariff of hospital operation action at this time, set cost method based on activity based costing, then compare tariff of operation action based on activity based costing with its realization. The results showed that from the calculation of the tariff of the operational action by using activity-based costing, if it is compared with the tariff used by the hospital, activity-based costing gives greater results for small operation actions and gives smaller results for medium and large operations. This is due to the overhead cost of each product. In activity-based costing, the overhead cost of each product is charged to many cost of drivers. So in activity-based costing, has been able to allocate the cost of activity to each operational action based on the consumption of each activity