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Activity-based costing via an information system: an application created for a breast imaging center
1Department of Radiology, University of Cincinnati Medical Center, OH, USA.
Journal of Digital Imaging
|July 10, 2001
Summary
Activity-based costing (ABC) improves product and service cost estimation accuracy. Integrating ABC with information management (IM) and systems (IS) streamlines the process, reducing resource needs for accurate healthcare costing.
Area of Science:
- Healthcare Management
- Cost Accounting
- Information Systems
Background:
- Traditional costing methods lack accuracy in complex healthcare environments.
- Managed care necessitates responsible and accountable financial practices.
- Activity-based costing (ABC) offers a more precise approach to cost estimation.
Purpose of the Study:
- To explore the integration of Activity-based costing (ABC) with Information Management (IM) and Information Systems (IS).
- To enhance the efficiency and reduce the resource intensity of ABC implementation.
- To demonstrate the application of integrated ABC in a multidisciplinary breast center.
Main Methods:
- Mapped constituent activities within a multidisciplinary breast center.
- Identified specific cost drivers for each activity.
- Structured cost data within an information system database for analysis.
Main Results:
- Demonstrated the feasibility of integrating ABC with IM/IS.
- Showcased a process-oriented approach to cost analysis.
- Established a foundation for subsequent detailed financial analysis.
Conclusions:
- Integrating ABC with IM/IS can improve accuracy and efficiency in cost estimation.
- This approach is valuable for healthcare organizations facing managed care demands.
- Further analysis can leverage the structured data for strategic financial decision-making.