Application methodology of standardized Activity-Based Costing method for hospital organizations

Abstract

The study presents the application methodology of standardized Activity-Based Costing (ABC) method for hospital organizations. Objective of the methodology is to allow the organization wide application of the ABC method, with development of general principles of the ABC application in selected hospital departments. Objective of the study was do design the methodology of ABC application which will be simplified in comparison with traditional ABC models and standardized in order to allow the similar structure in various hospital departments. Application methodology was verified on three selected hospital departments which are ENT, Dermatology and neonatology department. Designed application methodology allows the calculation of the patient cost within various diagnoses, with higher accuracy than traditional costing methods.