The Research On The Application Of Activity-based Costing In The Hospital

In recent years, with China’s medical and health system continuously deepening the reform and manyemerging hospitals pouring into the market, there is increasingly fierce competition in the domestic hospitalmarket. Under the environment of market competition, the main way of hospitals to stand out is to savecosts and to create more benefits with limited resources. Because the ever-changing medical system andrelated finance subsidy policy but with a too rough calculation, the way of traditional cost accountingexisting in hospitals has already not adapted to the development in the times. If we want hospitals toconform to the trend of development and provide satisfying services, we need to change the existingbackward cost management concept, search for new methods and the way out to improve thecompetitiveness of the hospitals. At present, it is very popular and unique to adopt activity-based costingin cost management in manufacturing industry, but it is strange in hospital. To this end, this article throughto A hospital room colour to exceed design application process of homework cost method, in order toexplore the hospital operating cost management to establish scientific and reasonable system of help.Based on the theoretical research and case study and with successful experience at home and abroad,we do a search on the ABC in the hospitals of our country and make a further analysis of it in connectionwith the characteristics of our hospitals. Firstly, the article introduces the concept and procedures of ABCand explains its three fundamental theories: the theory of cost driver, the theory of value chain, controltheory. Secondly, it describes series of problems about cost management in the hospitals, such as: costinformant distortion, absence of cost management, weak cost consciousness. So we can draw a conclusionthat existing cost management mode can’t meet the hospitals’needs and it needs immediately reforming tointroduce modern ways and methods of accounting. Then, the paper discusses the exclusive advantages ofABC because it can make these problems improved effectively. So it is necessary to adopt the ABCmanagement. And by comparing the applicable conditions of ABC management with the actual situationsof a hospital in our country, it is furnished with the requirements for the hospitals adopting the ABC, and ispossible to exercise the ABC.Thirdly, in this passage, a color ultrasonic room in hospital A is selected as the object of study. It is furnished with a applicable homework cost procedure which is specially designed and it suffers a specificaccounting analysis: divide operation, determine the resource cost library and resource driver,allocateresource cost to each operation according to resource drivers, share the homework cost with the projectsbased on the activity drivers, and collect the item costs of the hospitals. Through the comparison betweenthe item cost of hospital service in the color ultrasonic room under the traditional costing accounting andthat under ABC, analysizing the two different results and their reasons, it is apparent to discover the meritsof ABC which is available in the hospital. At the same time, under these analyses, some lessons are learnedabout the hospitals’management.Finally, it argues the problems resulting from the execution of ABC in hospitals of our country andproposes related suggestions from two different perspectives of macro and micro environments. Throughanalysizing the problems about the implementation of ABC in a hospital, it can be seen that although thepreliminary conditions of ABC are available to hospitals but there has existed many limitations during itsexecution. Only if the government provides strong support and the hospitals improve their microenvironments, the ABC can be secured to continue in the hospitals in China.Through my research,we can conclude herein that: firstly, ABC is different from the traditional costaccounting which solely is in consideration of case number and unit price. ABC divides the cost into threeparts: registration, check, report, which can reflect actual consumption of various items to help control costreasonably and accurately. Secondly, most medical service costs are higher than the current pricing,revealing that maybe the price is too low, especially obstetric color ultrasonic too low however, heart colorultrasound too high. A single cannot represent the whole but say something in a way. The research data ofhospital A,to a certain extent, can provide the reference price for the government and relevant departmentssetting the prices in service items of hospitals.