Hospital Administration Costs Analysis Essay

Hospital Administration Costs Analysis Essay

Length: 1286 words (3.7 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

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, “administ...

... middle of paper ...

...ivity based costing to a surgical unit is identifying activities. This requires great insight into the treatments of specific diseases. The next step, which is the most important one, is to establish cause-effect relationships between resources consumed and physical activities and allocate costs to the chosen cost drivers accordingly. At last, some refinements should be taken into account, such as risks, overtime, charge for early starts and over runs etc.
If A&E Department and Surgical Unit are compared, we see the cost pools and the cost drivers are usually the same. The difference lies in the nature of each department, for example, A&E is a medical treatment facility specialising in taking care of patients who present themselves without a prior appointment, whereas the patients in the surgical unit are constant and are treated as per their given appointments.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on Healthcare Costs: USA vs France

- Cost is the most challenging factor in health care. The reasonability and affordability of healthcare should be the main concern for the community. A more acceptable cost will guarantee improved access to healthcare for everyone. The United States American health expenditure totaled 17.7% of the Gross Domestic Product (GDP) or $ 8,507.6 per capita in 2011 (OECD, 2013). American health care cost depends on the market including several providers (profit, non-profit, and government owned facilities) and payers (private for profit, non-profit insurance companies, the government, self insured and self payers)....   [tags: health, healthcare costs]

Strong Essays
1279 words (3.7 pages)

Statistics in Healthcare Administration Essay

- In the health care industry, gathering information in order to find the best diagnosis route or even determine patient satisfaction is necessary. This is complete by conducting a survey and collecting data. When the information is complete, we then have statistical information used to make administrative decision within the healthcare field. The collection of meaningful statistics is an important function of any hospital or clinic. “Quantitative research guides health care decision makers with statistics--numerical data collected from measurements or observation that describe the characteristics of specific population samples....   [tags: Healthcare Administration Essays]

Strong Essays
936 words (2.7 pages)

Transformational Leadership in Healthcare Essay

-   Why now. Why are we focusing on transformational leadership. Healthcare costs are continuing to rise. Some of the critical problems and active debates prevalent in many hospital organizations include the rapidly intensifying healthcare costs, funding and reimbursement cutbacks, and concern regarding the overall quality and safety of health care. “Healthcare systems have come under pressure to improve performance and manage productivity” (Botting, 2011). To be successful in the 21st century, there is a demand on healthcare systems to have a vision and executive and clinical leadership to inspire the change process and make the difference between success and failure in change....   [tags: Hospital Administration]

Strong Essays
849 words (2.4 pages)

Shouldice Hospital Operations Management Essay

- Shouldice Hospital Operations Management Introduction Shouldice Hospital, set up in 1945 by Dr. Earl Shouldice, is located near Toronto. It follows the business model of focus on a single standardised service for a narrow target of consumers, rather than to provide customised solution (as in a general clinic or hospital). It focuses on providing quick, convenient, and reliable cure for external types of abdominal hernias. The Hospital uses its own technique, called the Shouldice Method. It is famous for a relatively short post-operative recovery period....   [tags: Business Management Analysis]

Strong Essays
1422 words (4.1 pages)

Florida Agency For Health Care Administration Essay

- The Agency for Health Care Administration (AHCA) is a regulatory agency in Florida which was created under the Health Care Reform Acts of 1992. The purpose of the Health Reform Acts of 1992 was to ensure efficient quality and affordable health care services were available to all Floridians by the end of 1994. Florida, in the 1980’s, had a very large population of uninsured residents and a large population of senior citizen, practically all of whom are insured by Medicare; and its Medicare expenditures per eligible beneficiary were the highest in the nation (Florida Agency For Health Care Administration)....   [tags: regulatory agency, ]

Strong Essays
1197 words (3.4 pages)

Essay about Faith Community Hospital Case Study

- Faith Community Hospital Case Study The case study of the Faith Community Hospital presented several issues that are affecting the success of the hospital. The nonprofit organization has developed a negative rapport with its community, patients, and stakeholders....   [tags: Management Organization Analysis Strategy]

Strong Essays
1388 words (4 pages)

Oncology Clinical Trials at Holy Cross Hospital: A Cost-Effective Model Essay

- Introduction The cost associated with conducting clinical trials is one area that many institutions fail to consider. The “hidden costs” as I like to call them or administrative fees incurred by institutions for maintaining non-enrolling clinical trials is just one example. At a time when costs are rising in practically every area of running clinical trials, it is absolutely necessary to have a budget that adequately meets the financial needs of a study regardless if the study is enrolling patients or not....   [tags: Hospital Administration]

Strong Essays
1876 words (5.4 pages)

Hospital Trends in The Current Economic Environment Essay

- Hospital Trends 1. How is the current economic environment affecting hospitals. According to the article, “The Economic Downturn and Its Impact on Hospitals”, the current economic environment is affecting hospitals and other heath care facilities in a number of ways. The most common issue relates to inability of the hospitals to obtain and secure relevant financing that enables health institutions to meet their daily obligations. Since most payments in hospitals lags behind the amount expected to deliver health care, most of the times hospitals are forced to borrow funds from financial institutions to meet their operating expenses....   [tags: Hospital Administration]

Strong Essays
1043 words (3 pages)

Essay on Patient Pharmacological Analysis

- Pharmacological Questionings These pharmacological inquiries focus on a 62-year-old patient whom I will refer to as Bob Smith. Bob was medevac’d to OHSU from his home in Grants Pass, Oregon. He has been a paraplegic since the age of 19 after a motor vehicle accident. His current diagnosis happened as a result of falling and being left for three days. He has extensive pressure ulcers that were infected and needed immediate surgery. Bob also has type 2 diabetes. Bob has a current prescription list of 31 medications....   [tags: vitamins, wounds, antibiotics]

Strong Essays
881 words (2.5 pages)

Essay about Analysis of the John Hopkins Hospital

- ... John Hopkins Hospital (Mason medical archives 2010). This hospital happens to be the first amongst a few in the United States that admitted first women into Medical school, first hospital to use rubber gloves during surgery, the first in the country to develop renal dialysis and CPR centers What drives demand of the John Hopkins Hospital. Since the establishment of John Hopkins Hospital in 1889, many research and clinical findings have been brought forth as a result of the efforts made by the team of committed researchers, physicians, and staff of this hospital....   [tags: business and operations analysis]

Strong Essays
1996 words (5.7 pages)