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Drivers of cost system development in hospitals: results of a survey

Author

Listed:
  • Eddy Cardinaels
  • Filip Roodhooft
  • Gustaaf Van Herck

    (Vlerick Leuven Gent Management School)

Abstract

While many hospitals are under pressure to become more cost efficient, new costing systems such as Activity-based costing (ABC) may form a solution. However, the factors that may facilitate (or inhibit) cost system changes towards ABC have not yet been disentangled in a specific hospital context. Via a survey study of hospitals, we discovered that cost system development in hospitals could largely be explained by hospital specific factors. Issues such as the support of the medical parties towards cost system use, the awareness of problems with the existing legal cost system, the way hospitals and physicians arrange reimbursements, should be considered if hospitals refine their cost system. Conversely, ABC-adoption issues that were found to be crucial in other industries are less important. Apparently, installing a cost system requires a different approach in hospital settings. Especially, results suggest that hospital management should not underestimate the interest of the physician in the process of redesigning cost systems.

Suggested Citation

  • Eddy Cardinaels & Filip Roodhooft & Gustaaf Van Herck, 2004. "Drivers of cost system development in hospitals: results of a survey," Vlerick Leuven Gent Management School Working Paper Series 2004-09, Vlerick Leuven Gent Management School.
    • Handle: RePEc:vlg:vlgwps:2004-09
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    1. Eriotis, Nikolaos & Stamatiadis, Filippos & Vasiliou, Dimitrios, 2011. "Assessing Accrual Accounting Reform in Greek Public Hospitals: An Empirical Investigation," MPRA Paper 30246, University Library of Munich, Germany.
    2. Vogl, Matthias, 2013. "Improving patient-level costing in the English and the German ‘DRG’ system," Health Policy, Elsevier, vol. 109(3), pages 290-300.
    3. Nikolaos Eriotis & Filippos Stamatiadis & Dimitrios Vasiliou, 2011. "Assessing Accrual Accounting Reform in Greek Public Hospitals: An Empirical Investigation," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 4(1), pages 153-184, March.
    4. Chrysanthos D. Christou & Eleni C. Athanasiadou & Andreas I. Tooulias & Argyrios Tzamalis & Georgios Tsoulfas, 2022. "The process of estimating the cost of surgery: Providing a practical framework for surgeons," International Journal of Health Planning and Management, Wiley Blackwell, vol. 37(4), pages 1926-1940, July.
    5. Eddy Cardinaels & Naomi Soderstrom, 2013. "Managing in a Complex World: Accounting and Governance Choices in Hospitals," European Accounting Review, Taylor & Francis Journals, vol. 22(4), pages 647-684, December.
    6. Demeere, Nathalie & Stouthuysen, Kristof & Roodhooft, Filip, 2009. "Time-driven activity-based costing in an outpatient clinic environment: Development, relevance and managerial impact," Health Policy, Elsevier, vol. 92(2-3), pages 296-304, October.
    7. Dewaelheyns, Nico & Eeckloo, Kristof & Van Herck, Gustaaf & Van Hulle, Cynthia & Vleugels, Arthur, 2009. "Do non-profit nursing homes separate governance roles?: The impact of size and ownership characteristics," Health Policy, Elsevier, vol. 90(2-3), pages 188-195, May.
    8. Michael K. Chapko & Chuan‐Fen Liu & Mark Perkins & Yu‐Fang Li & John C. Fortney & Matthew L. Maciejewski, 2009. "Equivalence of two healthcare costing methods: bottom‐up and top‐down," Health Economics, John Wiley & Sons, Ltd., vol. 18(10), pages 1188-1201, October.
    9. Maik Lachmann & Rouven Trapp & Felix Wenger, 2016. "Performance Measurement and Compensation Practices in Hospitals: An Empirical Analysis in Consideration of Ownership Types," European Accounting Review, Taylor & Francis Journals, vol. 25(4), pages 661-686, October.
    10. García-Cornejo, Beatriz & Pérez-Méndez, José A., 2018. "Assessing the effect of standardized cost systems on financial performance. A difference-in-differences approach for hospitals according to their technological level," Health Policy, Elsevier, vol. 122(4), pages 396-403.
    11. Stamatiadis, Filippos & Eriotis, Nikolaos, 2011. "Evolution of the Governmental Accounting Reform implementation in Greek Public Hospitals: Testing the institutional framework," MPRA Paper 28816, University Library of Munich, Germany.
    12. Malgorzata Cyganska & Piotr Cyganski & Chris Pyke, 2019. "Development of clinical value unit method for calculating patient costs," Health Economics, John Wiley & Sons, Ltd., vol. 28(8), pages 971-983, August.

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