Document Type
Article
Publication Date
1994
Publication Title
Journal of Management Systems
First Page
22
Last Page
38
Additional Publication URL
http://www.aom-iaom.org/jms.html
Abstract
We examine a structural deficiency in the healthcare system that hinders implementation of a meaningful cost accounting system, and suggest an alternative organizational arragement that can facilitate introducing cost control mechanisms. We argue that hospitals need structural rearrangement so that cost-driving activities can be traced, and their costs allocated to responsibility centers. We suggest that this structural rearrangement is a precondition for implementing any meaningful activity-based cost management system. We also suggest a basic framework for value analysis of activities for healthcare providers, and discuss how this framework can be used as a vehicle for controlling diagnostic costs.
Rights
This article was archived with permission from Association of Management-International Association of Management, all rights reserved. Document also available from Journal of Management Systems.
Recommended Citation
Lee, W. and Mahenthiran, Sakthi, "Managing Costs through Structural Re-arrangement of Hospitals: An Activity Based Management Perspective" (1994). Scholarship and Professional Work - Business. 56.
https://digitalcommons.butler.edu/cob_papers/56
