Application Of Activity-Based Costing In Cost Management Of CK Hospital

In the recent two years,to further carry out the medical industry's reform,the government has continuously stressed the importance of hospital cost accounting and control from controlling drug expenses to implementing the relevant policies of medical insurance.In2017,the State Council planned to comprehensively implement the multi-component payment method of medical coverage mainly based on the types of diseases(DRGs point payment method),and take the lead in Zhejiang Province in 2020.The new payment method of medical insurance explicitly points out that for diseases requiring long-term hospitalization and generating stable daily average costs,such as mental illness,hospice care,and medical rehabilitation,the payment is converted through DRGs points and combined with the number of bed days.The medical insurance bureau pays the hospital according to the determined expenses.If there is any surplus,it can be included in the hospital income.If it exceeds the standard,the hospital needs to make up the difference,which has nothing to do with the inpatient.CK hospital is privately held,located in Zhejiang Province.On the one hand,the hospital has the nature of an enterprise,profit as an essential goal of hospital development;on the other hand,it is a medical insurance designated hospital.With the implementation of policies such as canceling drug mark-up and the reform of medical insurance payment mode,the hospital's future income is mainly computed by disease types,replacing the current pricing model priced according to project types.Therefore,the medical cost will become the critical factor determining CK hospital's profitability.At present,CK hospital urgently needs to change the internal cost management and reduce the medical service cost for various diseases to maintain profit and development in the new reform.This paper attempts to apply activity-based costing to CK hospital's medical technology examination department,help CK hospital improve the current situation of cost management,and provide a reference for hospital cost management reform.This paper uses a combination of theory and case to analyze and study the influence of activity-based costing on cost management in CK hospital.First of all,it introduces the five theories of cost management,hospital cost management,and related concepts of activity-based costing.It analyzes the advantages and limitations of activity-based costing in cost management.Then,take CK hospital as a case study to analyze and summarize the current situation and existing problems in the cost management in CK hospital.Finally,apply the activity-based costing accounting process to the medical technology inspection department in CK hospital and obtain the costs,including the total cost of medical projects,a single case cost.The following expected outcomes will be achieved if implementing the activity-based costing in CK hospital through the analysis of the results.First,activity-based costing canreflect the resource consumption of the enterprise,making the cost budget of the next year more reasonable and practical.Second,the calculation result from the activity-based costing can be used as the basic data for cost control,helping the cost control strategy become more accurate and increasing the effectiveness of cost control.Third,activity-based costing can apportion the indirect cost,making the results of cost accounting more real.Fourth,during the implementation,activity-based costing will strengthen staff's cost management awareness,help the hospital management to distinguish value-added and non-value-added activities,and make the assessment system tend to be improved.To ensure the smooth and efficient implementation of activity-based costing,CK hospital needs to: first,improve the awareness of the hospital cost management,motivate the staffs in every department to participate in cost management;second,form a cost management information feedback and coordination mechanism in the hospital,and realize the refined cost control;third,enhance the hospital's information integration to achieve the information interconnection.