A Study On The Application Of Time-driven Activity-based Costing In J Hospital

Since the reform of China’s new medical system,in more than 10 years,China has taken several steps to improve it.After our country has strongly promoted the zero price difference for some medical consumables and drugs,the situation of doctors supported by drugs and medical materials has been improved.Affected by this,the revenues of public hospitals has also decreased compared to the past.However,most public hospitals pay too much attention to the improvement of business capacity,ignoring control and accounting of costs;meanwhile most of them still use full cost method to calculate costs,resulting in the annual increase of costs in some hospitals.Therefore,facing the future market,public hospitals are in urgent need of transforming the former extensive economic management to refined economic management.So it is particularly critical to choose scientific and suitable cost accounting and control methods.TDABC method is an improved activity-based costing method based on ABC method.It can not only attribute and trace costs,but also save many material resources and labor,and provide real-time,effective and accurate cost information.Adopting advanced TDABC method has irreplaceable advantages over ABC method.In actual work,most hospitals in our country still use the full cost method or a combination of full cost method and ABC method to calculate costs,and there are few applications of TDABC method.This paper is in the form of case study,focusing on the radiology of J Hospital,which is a large public hospital in the province,as the case study goal.After analyzing the status of its cost accounting,the introduction of TDABC method is carried out related research.This paper is made up of five parts.The first part is the preface,which mainly sets forth the research significance、background、content、using methods、current research status at home and abroad and this paper’s expected innovation.The second part is the related theory.The third part analyzes and introduces the cost accounting case of J Hospital.The fourth part is the concrete application of TDABC method in J Hospital and the necessary safeguard measures.The fifth part is suggestions and conclusions.This paper focuses on J Hospital’s cost accounting、finds issues and its causes.This paper explains the introduction of TDABC method is feasible and necessary,establishing specific applications of TDABC method by selecting target departments,setting up operation centers and collecting costs.Finally,by comparing the cost results calculated by TDABC method and J Hospital’s current cost method,and explains why the cost gap of this department is too large when the income level is similar,and proposes relevant improvement suggestions.At the same time,it puts forward the guarantees that should be provided for using TDABC method.Through case analysis,it is found that using TDABC method can accurately calculate the true cost of medical service items through reasonable cost allocation,meanwhile it can also facilitate the real-time cost management of hospitals.At the same time,it is hoped that the research findings in this paper may contribute to induce other hospitals to improve their accounting and cost management.