Application Of Activity-based Costing In Hospital Cost Management

As a comprehensive index,cost can not only reflect the material consumption,management level and the efficiency of capital utilization of an enterprise,but also profoundly affect its future development trend.For the cost management of public hospitals,how to rationally allocate and make full use of limited resources is the main problem at present.The traditional cost accounting method is generally used in the cost management and control of public hospitals in China.However,the cost accounting method is relatively not meticulous.It is easy to lead to a series of problems such as unreasonable cost allocation and inaccurate accounting results,which makes the hospital cost management and control system imperfect.In this regard,the application of activity-based costing will give some scientific improvement to the cost management of modern medical institutions.This article mainly elaborates the related theory of hospital cost management and activity-based costing,and introduces the model of the application of activity-based costing in hospital cost management.L Hospital,a public hospital in Shanghai is taken as the research object.According to the current cost management status of the L Hospital,the article discusses the related problems of the L Hospital cost management mechanism and considers the necessity and feasibility of the activity-based costing method application in the hospital’s cost management.Furthermore,the article selects the Ultrasound Department as the pilot department of the application of activity cost method in L Hospital and introduces the division of activities,the allocation of resource drives and cost drives.Then we analyze the phased effects of the L hospital’s activity-based costing method,compare the accounting results of the traditional cost method with the activity-based costing method,and analyze the economic benefits,project quality and satisfaction during the implementation of the method.On this basis,the hospital’s safeguard measures applied in the activity-based costing method are proposed,which gives some inspiration to the hospital’s cost managementefficiency and level.Activity-based costing,as an advanced method,can solve the above problems to a certain extent.The author hopes this study can provide some reference value for L Hospital’s application of activity-based costing method and serve as a certain role for the improvement of the cost management in the medical and health industry.