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Related Experiment Video

Updated: Apr 27, 2026

Simulation of a Scaled Assembly Process with Collaboration of a Robotic Arm and Monitoring through a Vision System for Quality Control
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Improving value with TDABC.

Robert S Kaplan

    Healthcare Financial Management : Journal of the Healthcare Financial Management Association
    |June 28, 2014
    PubMed
    Summary
    This summary is machine-generated.

    Time-driven activity-based costing accurately tracks patient care costs across all settings. This method details resource expenses and patient time, enabling comprehensive cost aggregation for defined episodes of care.

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    Area of Science:

    • Health economics
    • Healthcare management
    • Cost accounting

    Background:

    • Traditional costing methods often fail to capture the full patient journey.
    • Understanding true healthcare costs requires a patient-centric approach.
    • Variability in care delivery impacts resource utilization and expenses.

    Purpose of the Study:

    • To introduce and detail the Time-Driven Activity-Based Costing (TDABC) methodology.
    • To illustrate how TDABC can accurately assess costs across the continuum of care for a medical condition.
    • To demonstrate the capability of TDABC in aggregating costs from multiple healthcare providers within an episode of care.

    Main Methods:

    • TDABC traces patient pathways through inpatient and outpatient services.
    • It identifies and quantifies the cost of all resources consumed (personnel, space, consumables, equipment).
    • Patient time spent with each resource is meticulously documented.

    Main Results:

    • TDABC provides granular insights into the actual cost of care delivery.
    • It highlights resource consumption patterns and time allocation throughout a patient's episode of care.
    • The methodology supports the aggregation of cost data across diverse healthcare organizations.

    Conclusions:

    • TDABC offers a robust framework for understanding the true cost of healthcare interventions.
    • Accurate cost data facilitates better resource management and strategic decision-making.
    • This approach enhances transparency and accountability in healthcare finance.