Application Of Activity-based Costing In Cost Accounting Of Public Hospitals

In recent years,as China’s overall strength continues to rise and the economy develops steadily,the reform of the pharmaceutical system is also advancing steadily.With the announcement by China’s Health Commission in 2017 of the abolition of the drug bonus,in recent years,more and more private hospitals have entered the medical market,which makes the public hospitals face the dual pressure of policy requirement and market competition.In this context,how to ensure the hospital’s sustainable management in the fierce market competition has become a new problem.From the point of view of open source and reduce expenditure,hospitals should not only increase revenue,but also control cost.At present,most of the public hospitals in China still use the traditional cost accounting model which is too simple and rough,and its cost accounting model can not meet the requirements of the new medical reform for cost control.Because the application of activity-based costing in cost accounting can improve the precision and accuracy of cost accounting,it can be introduced into public hospitals in China to change the way of cost accounting,to Control and reduce the corresponding cost,a more systematic and comprehensive cost accounting system should be constructed to match the hospital’s own situation.Y Public Hospital is a county-level public hospital,its cost accounting method and mode is still at the level of departments.The author found that the management of y public hospital has no awareness of cost control.As far as the way of its accounting is concerned,the distribution of the hospital’s indirect expenses is relatively rough,which results in the distribution results can not really reflect the consumption of the hospital’s cost resources by the medical items;this not only hinders the hospital from carrying out fine management of the hospital’s cost in the future,also can not make the related decision for the hospital management to the hospital cost control.Activity-based costing is a cost accounting method that can improve the accuracy of cost accounting.It can provide managers with more real and detailed cost data,this advantage just can make up the traditional cost accounting method unreasonable and the information error big flaw.At present,the DRG payment method of the national health reform needs to be based on the activity-based costing method.Therefore,drawing on the experience of the successful application of activity-based costing in the medical industry at home and abroad,applying it to the domestic public hospital accounting system can not only reflect the real consumption of the product cost of the hospital project,reduce the unnecessary expenditure,and make the cost accounting more reasonable,but also lay a foundation for the DRG payment mode in China.On the basis of a lot of literature research,this paper uses the research results of activity-based costing at home and abroad for reference as well as relevant case experience to carry out relevant research and analysis around the cost accounting process of y public hospitals.Based on this,this paper first defines the concepts of hospital cost management and cost accounting,activity-based costing,informatization,and expounds the basic process of activity-based costing and its advantages and limitations,provide the theoretical basis for the case study later.The next part of the case selected the Y public hospital in a city in Yunnan Province.By introducing the current Cost Accounting Status of the y public hospital and the accounting methods,it was explained that the current hospital cost accounting is not comprehensive,the author tries to design the process of y hospital cost accounting with activity-based costing method,and chooses the rehabilitation department as an example,according to the cost accounting process constructed under the activity-based costing method,the cost of medical service items in rehabilitation department is calculated.By comparing the difference between the results calculated under the activity-based costing method and the traditional costing method,it is further concluded that the application of activity-based costing in public y hospitals is helpful to refine the cost accounting and make the accounting information more authentic.It also helps managers to make relevant decisions on hospital cost control,to reduce unnecessary medical costs,rational use of medical resources,but also for the hospital medical service project pricing to provide a basis for reasonable adjustment.Therefore,at the end of the paper,the author puts forward some feasible suggestions: to improve the relevant functional institutions,standardize and implement the budget system;to improve the relevant human incentive system and restraint system;and to strengthen the emphasis on the hospital information construction.The purpose of this study is to make some contributions to the application of activity-based costing in public hospitals in our country and to the control of medical cost.