Application And Cost Analysis Of Hospital Cost Accounting Methods

It is an inevitable trend for hospitals to carry out cost accounting and for medical service to involve in market competition. Cost accounting in hospitals can help managers understand how much the actual expenditure happened when certain medical income is available and therefore make scientific and proper policy based on the outcome of cost accounting.Cost management and accounting implemented in foreign countries and China are outlined in summarization part of the paper. In the main body of the paper, one hospital data was chosen as a sample to explain how the method of cost accounting applied to practice, which followed by the rule of cost accounting exerted in national traditional Chinese hospital. It can be learnt from the outcome of cost accounting that the actual total hospital cost (cost constitution, cost recovery rate and cost element distribution), department cost, per visit cost and per bed-day cost. What's more, the application of cost accounting in hospital economic management is also discussed, such as the role that cost accounting played in reward distribution and the balance point that income equal to the actual cost. And in the final part of the paper, some suggestion on method and program is proposed.Based on the above statement, we can see that cost accounting is the beneficial tool for hospital managers to make proper and scientific decision, in the other word, it provides the actual digital fact. And it also will play a key role in helping the hospitals to strengthen capability to adapt the new market environment.