The home health agency as a cost center

Decisions involving the economics of home health care agencies require accurate and useful data on agency finances and cost-efficiency relationships, One step in the direction of improving economic management can be taken by defining the agency as a cost center, that is as an economic entity, with which specific resources, revenues and costs which can be expressly identified. This paper describes the economics and accounting frameworks within which resources and costs are classified and allocated into direct and indirect, and fixed and variable categories.