Research On Time-driven Activity-based Costing Application In The Cost Accounting Process Of Hospital A

Along with the rapid economic development in China,the people’s living standards has been being improved constantly in recent past,but at the same time,aging of population is becoming more and more apparent,and various health problems for the public is also emerging up because of the accelerating pace of life.With the enhancement of health awareness among people,medical industry has become the citizens in China most the issue of concern.However,the per-capita medical resources of China still remain scarce and geographically different,compared to other advanced nations.The health care facilities in some rural corners are far away from perfect,which makes the people in these areas suffer from diseases.Clearly,medical and health system reform has emerged as a primary problem,which the Chinese government needs to tackle in this century.The optimal allocation of medical resource quotas plays a very important role in the reform process,and the prerequisite of the optimal allocation of medical resource quotas is a reliable and reasonable cost accounting method.Through this method,managers can obtain more accurate cost data that used to realize the product & service pricing,the cost controlling and the revenue maximization,which is obviously required to lay a solid foundation for the further improvement of medical services and the expansion of medical resources.To the best of our knowledge,however,the existing cost accounting methods used in hospital finance departments are fairly raw that usually witnesses exceptional phenomena of the low utilization rate of resources and the unreasonable auxiliary allocation.That doubtless leads to the problem that the actual cost estimation is usually far from accurate,which further cannot meet the needs of modern hospital financial management.In order to solve above problem,this thesis attempt to improve and rebuild a complete set of medical cost accounting process.This new process will take Time-driven Activity-based Costing as the core,which is the most endemic method in contemporary business and economic systems.One actual hospital case will be the application object of this new process in order to acquire a series of more reasonable medical resource cost data and uncover the possible spare capacity,which will undoubtedly provide more reliable suggestions and references for the future hospital financial program development.The specific work of this thesis will be carried out by the combination of theory and practice.The theoretical aspect will summarize and review the existing cost accounting methods in the form of pre-literature research.The survey includes the advantages and disadvantages of each method,and their corresponding common application scenarios.The theoretical part will also discuss the necessity,key issues and difficult issues of the introduction of Time-Driven Activity-Based Costing in hospital financial system.For another,the practical aspect will take the actual situation of A hospital as an example.The Time-driven Activity-based Costing method will be applied in hospital for entire cost accounting at first.Also,the problems of this method in practical application will be analyzed,and the possible solutions will be presented.Second,the effects of cost accounting results on cost budgeting,cost control and cost performance will be verified in detail.Finally,the improvement measures will be proposed according to the actual situation of the hospital.The results of practical application suggest that the new medical cost accounting process based on Time-Driven Activity-Based Costing method can indeed provide more accurate cost data for hospital financial department,reduce the unnecessary medical expenses and encourage medical staff to improve the service quality.Then,the economic benefits and the market competitiveness of hospital can be indeed promoted,which will create an incentive for health reform,so as to better bring tangible welfare to people.