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Activity-Based Costing.

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Summary
This summary is machine-generated.

Activity-based costing (ABC) can improve healthcare efficiency by allocating costs to specific services. Time-driven ABC (Td-ABC) integrates fee-for-service and capitation models to support value-based care, rewarding providers for outcomes and efficiency.

Keywords:
accountingactivity-based costinghealth care

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Area of Science:

  • Healthcare management
  • Cost accounting
  • Health economics

Background:

  • Cost allocation in healthcare is complex.
  • Activity-based costing (ABC) is a tool for cost management.
  • Inefficiencies in healthcare supply chains can be identified using ABC.

Purpose of the Study:

  • To analyze the implementation of time-driven activity-based costing (Td-ABC).
  • To explore the medical applications of Td-ABC.
  • To review the advantages and disadvantages of Td-ABC in healthcare settings.

Main Methods:

  • Literature review was conducted.
  • Analysis of existing studies on Td-ABC implementation and application.
  • Examination of Td-ABC's role in transitioning to value-based care.

Main Results:

  • Td-ABC can provide insights into healthcare costs and inefficiencies.
  • It facilitates a transition to value-based care by rewarding efficiency and outcomes.
  • Potential risks and disadvantages associated with Td-ABC implementation were identified.

Conclusions:

  • Td-ABC offers a framework for more accurate cost allocation in healthcare.
  • It supports value-based care models by focusing on efficiency and patient outcomes.
  • Careful consideration of Td-ABC's limitations is necessary for successful implementation.