This website uses cookies to ensure you have the best experience. Learn more

Hospital Administration Costs Analysis

1373 words - 6 pages

Hospital administration costs can be mercifully expensive costing $361 billion per year in the USA alone, three times what is spent on cancer. Therefore finding a costing system that gets the most efficient results from administration is crucial, so that more can be spent on hospital's core duties of providing health care. However despite the rather costliness it serves a central purpose of effectively overseeing the hospitals activities and making sure care quality and safety standards are kept intact. Going into further detail this may involve making sure national/state rules and procedures are adequately followed and managing financials of the hospital, be it setting budgets, providing extra funds to a department or cutting expenses.
In order to apply ABC to hospital administration we have to first split costs into cost pools, some of which are stated below:
Cost Pool Cost Driver
Staffing Number of employees
Registration Number of patients
Education and Training Number of new employees
Receptionist Hours worked

ABC costing in administration is usually applied in much the same way as in other hospital departments or even as in other industries, however as seen in its application at the “Shahid Faghihi” Hospital there can be two major variations when used to find costs of administrative activities.
The first of these is that the interpretation of the word “activity centres” is different in administration to other sectors. Unlike other departmental services, “administrative units” are not one that provide a patient with direct care therefore based on its given obligations each subsector can be portrayed as an activity centre. For example accounting administrative unit is not by itself an “activity centre” instead we have the activity centres “patient” and “salary” accounting. Therefore its expenses should not be allocated to these activity centres as for instance “patient accounting” only provides a benefit to discharged patients, thus expenses of this centre should be allotted only to released patients. What we can conclude from this is that, had the accounting department not been split to activity centres, cost assignment would not occur correctly due to the fact many activities occur in the accounting unit, with some not connected to the duties of other activity centres.
The second difference is that costs of administrative centers are apportioned to other activity centers depending on the services provided. For instance the expenses of the drugstore activity center is to be apportioned according to the “number of prescriptions”.
Another methodology that has been volunteered, especially by CIMA, in order to control costs in hospital administration more effectively has been target costing,...

Find Another Essay On Hospital Administration Costs Analysis

Case Study of Hospital Management Issues

2040 words - 8 pages experience a negative ratio of community support and a corresponding financial loss.The effects of the second problem involving increased operating expenses and tighter insurance controls will present a serious challenge to hospital administration. If operating costs continue to rise and medical insurance reimbursement continues to decrease, the hospital could find itself operating with a financial deficit. This problem must also be addressed

Nurse to Patient Ratios: An Alternative Approach

1479 words - 6 pages nurse burnout (Cimiotti, Aiken, Sloane, & Wu, 2012, p. 486). The journals analysis presents evidence of research conducted in a hospital in the Philadelphia area. HAI rates in this hospital were as follows: 16 patients per 1,000 acquired some type of infection while hospitalized with the most common infections being UTIs at 8.6 infections per 1,000 patients and SSIs at 4.2 infections per 1,000 patients, followed by gastrointestinal infections at

Critical Thinking and Decsion Making: Let It pour-Case Study Analysis

1645 words - 7 pages people in the communities they serve through a comprehensive continuum of services" is being threatened by the inability of management to recognize, identify and correct the problem(s) that are slowly eroding the hospital's infrastructure and threatening its stability. The intent of my analysis is to identify the issues the hospital administrative staff must confront, as well as provide possible solutions to initiate the recovery of an ailing hospital

Critical Thinking Case Study - Faith Community Hospital

1727 words - 7 pages Introduction and Problem StatementFaith Community Hospital is a not-for-profit, community focused institution. It is not living up to its Mission Statement and its costs are growing more quickly that its revenue. Moreover, the CEO, by his own admission, is "not sure of ...[his]...role any more" (University of Phoenix course material, p.3).With an absence of leadership, it is no surprise that the hospital appears to be in chaos. Many of what the

Critical Thinking Case Study: Let it Pour

1690 words - 7 pages the problems that the healthcare industry as a whole is experiencing. Some of these problems include, a loss of power to insurance companies, government agencies, and even caregivers; rising operational costs; reduced revenue due to a reduction in the patient population; and vastly different levels of healthcare being provided by hospital staff due to differing religious and moral interpretations of the hospital mission statement. The hospital is

Let It Pour

2107 words - 8 pages Community Hospital is no exception. This analysis will focus on the different issues the hospital management is facing among it system of values, financial hardships, and how the organizational processes can maintain a strong and sound stability at Faith Community Hospital.Identify the ProblemAt the core, the kind of issues the Faith Community Hospital is facing, originate from the headlines that "medical errors cause tens of thousands of deaths each

Strategic Planning

1230 words - 5 pages the local level though the hospital is owned by the community. The directors who have dedicated their time and expertise in ensuring prompt delivery of medical services are volunteers who ask no compensation for their time and talent. Monthly meetings to provide guidance for to the senior administration of the hospital are held by the Directors. The Board is bestowed with the responsibility of guiding the vision of the hospital in terms of

Faith Community Hospital Case Study

2631 words - 11 pages made to the hospital administration and the public. The issues that the Faith Community Hospital is facing include: • Misinterpretation of the mission statement. • Medical staff making decisions regarding patients that are against the wishes of the patient and their families. The staff is also breaching hospital policies and legal guidelines by providing

Cost Calculations and Market Imperfections

933 words - 4 pages costs (Ho-Sihn, 2009). In calculating home care nursing services, assuming Memorial Hermann Hospital provides a 9 skilled nursing services visits per episode (60days) for its home health patients (CMS, 2013), it has a population of 11.2% of patients 65 years old and over (U.S Census Bureau, 2013), and its average cost per visit for skilled nursing services $129.56 (CMS, 2013). The minimum cost per visit that Memorial Hermann Home health service

Let it Pour: A Case Study

1501 words - 6 pages effectively run and maintain the hospital. This apparent loss of cohesion is tearing the infrastructure of Faith Community Hospital apart. The purpose of this analysis is to address the different situations facing the management staff at the hospital and what actions should be taken to address the problems. When addressing these concerns, the analysis will also tackle the organizational processes, ethical issues, and the hospitals financial situation

Lowering Healthcare Costs and Global Medical Tourism

2366 words - 9 pages strategies, it can be beneficial to include the payers in the planning process, so they understand why the changes are being made (McLaughlin & McLauglin, 2008). When hospital administrators work to address and improve administration and medical error rates they can make strides to lower their institutions’ service costs and provide better prices to private and employer insurance companies. Bargaining Power of Academic Medical Centers and

Similar Essays

Tax Exemtion Case Analysis

954 words - 4 pages eligible for the charitable care program. On the other hand, Provena alleges several important arguments in response to the courts analysis. They alleged that the hospital provided care to everyone who requested it regardless of their financial circumstances and that they provided discounted care for poor individuals. Nevertheless, the court stated that the discounted care was illusory because the charges were more than double the actual costs

Can Morality Exist In Healthcare Management?

3749 words - 15 pages preventative care, which according to this system is unimportant and, therefore, would not get any resources.As established earlier, in the setting of medicine, Utilitarianism is difficult to sustain. People's lives cannot be treated as a financial cost-benefit analysis. Rather, ethical principals of justice and fairness should be the fundamental principals by which Hospital Administration makes ethical decisions. Just as it suggests, these

Let It Pour My First Assignment As Executive Assistant

2023 words - 8 pages facing Faith Community Hospital is the raising cost of running the hospital, paired with the drop in patient population. The hospital's cost has risen over twenty dollars per patient when compared to last years cost. The hospital has also seen a seven percent drop in patient population. These rising costs and drop in patient care may force Faith Community to make some serious cutbacks in operating funds.The second concern that is facing Faith

Case Study: Faith Community Hospital: Mgt 350 Case Study Analysis Paper (Instructors Markings Included)

1974 words - 8 pages Case Study: Faith Community HospitalThe Faith Community Hospital has concerns about their growing problems within the hospital. These problems are their mission statement, ethical medical practices, and costs to run the hospital. The executives of Faith Community Hospital have been tasked with how to solve these problems. They must frame the problems, make the decisions, and evaluate those decisions for the betterment of the hospital. Their