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PubMed · 10145562

Capital PPS transition period affects timing differences.

M Garner·W Grossman
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Abstract

The Health Care Financing Administration's new capital payment system means hospitals face timing differences in their financial statements. A hospital's 10-year transition into the new system could involve a switch from the hold-harmless payment method to the fully prospective method. To maximize the recoverability of deferred assets and liabilities, hospitals should understand the details of both methods and how changes in third-party payment programs can affect timing differences.

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AccountingCapital ExpendituresCenters for Medicare and Medicaid Services, U.S.Financial Management, HospitalMedicare Part AProspective Payment SystemTime FactorsUnited StatesJournal Article

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BibTeXRIS

M Garner, W Grossman. 1992. Capital PPS transition period affects timing differences.. https://pubmed.ncbi.nlm.nih.gov/10145562/

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Activity-based costing: a practical model for cost calculation in radiotherapy.

PURPOSE: The activity-based costing method was used to compute radiotherapy costs. This report describes the model developed, the calculated costs, and possible applications for the Leuven radiotherapy department. METHODS AND MATERIALS: Activity-based costing is an advanced cost calculation technique that allocates resource costs to products based on activity consumption. In the Leuven model, a complex allocation principle with a large diversity of cost drivers was avoided by introducing an extra allocation step between activity groups and activities. A straightforward principle of time consumption, weighed by some factors of treatment complexity, was used. The model was developed in an iterative way, progressively defining the constituting components (costs, activities, products, and cost drivers). RESULTS: Radiotherapy costs are predominantly determined by personnel and equipment cost. Treatment-related activities consume the greatest proportion of the resource costs, with treatment delivery the most important component. This translates into products that have a prolonged total or daily treatment time being the most costly. The model was also used to illustrate the impact of changes in resource costs and in practice patterns. CONCLUSION: The presented activity-based costing model is a practical tool to evaluate the actual cost structure of a radiotherapy department and to evaluate possible resource or practice changes.

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