The Application Of Activity-based Cost Management In Youzhou Hospital

The new financial and accounting system performed nationwide in2012. Thenew financial and accounting system put forward higher request to the hospitalfinancial accounting and payments management. Either the total cost of the hospitalor the project department cost, diseases cost, bed-day cost are required in the contentof the cost reports. The aim of the new cost management not only involves thedistribution of interests in hospital, but also demands of the patients and the nationalrelated department. The purpose of traditional cost management is the distribution ofthe internal interests, leading to the straightforward accounting process and unclearresponsibility. The cost of health care project is mainly in accordance with theaverage income coefficient, disguising the authenticity of technical and cost of theproject. The patients and relevant government departments aren’t provided accurateproject cost in detail. Activity-based cost management is a kind of detailed manage-ment, providing department cost, more accurate medical project cost and the diseasecost, which could effectively make up for deficiencies of the traditional costmanagement method. The detailed cost management can make cost accountingresults not only used for the hospital internal benefit evaluation, but also forthe country and the majority of patients to provide services.Firstly, this paper is on the basis of related theory research of the activity-basedcost management, with a typical public hospital as a case to reveal problems existingin the traditional cost accounting and management, and analyses the existent reasons.Then by comparing the differences of cost item in hospital CT room between thetraditional cost management and activity-based costing management, the articleclarify that the activity-based cost management is an advanced cost managementmethods which can meet the demand of hospitals, patients and the national relateddepartment. Finally, this article put forward keys of implementation of activity-basedcost management and safeguards for application of activity-based cost management.Through the activity-based cost management in YouZhou hospital concreteapplication, the main purpose of this paper depicts comprehensive introduction to theapplication of activity-based cost management and reveals the activity-based costmanagement how to avoid the shortcomings of traditional cost and how to meet thedemands of all-round cost information. As a result of activity-based costingmanagement design and application in Youzhou Hospital, the main innovation of this paper could provide the precise cost information for the management decision inhospital and support for the countries and patients to make decision.