IDEAS home Printed from https://ideas.repec.org/a/iez/survey/ces-v18_2-2016_drazic-lutilsky-zmuk-dragija.html
   My bibliography  Save this article

Cost Accounting as a Possible Solution for Financial Sustainability of Croatian Public Hospitals

Author

Listed:
  • Ivana Drazic Lutilsky

    (University of Zagreb, Department of Accounting, Faculty of Economics and Business, Croatia)

  • Berislav Zmuk

    (University of Zagreb, Department of Statistics, Faculty of Economics and Business, Croatia)

  • Martina Dragija

    (University of Zagreb, Department of Accounting, Faculty of Economics and Business, Croatia)

Abstract

The purpose of this paper is to present the current usage of cost accounting methodology in Croatian public hospitals through conducted empirical research and to provide opinions of accountants and financial officers regarding possible implementation of cost accounting methodology in public hospitals. In the paper, the authors analyze the accounting system in Croatian public hospitals, identifying the flaws of the current accounting system with regard to the recording and allocation of costs. National healthcare systems of different European countries provide a theoretical background for the usage of accrual accounting basis and cost accounting methodologies, showing better governance and financial sustainability of public hospitals which have introduced cost accounting methodology. The conducted empirical research shows that accountants and financial officers believe that the healthcare system in Croatia is ready for a change in the current accounting system based on the modified accrual basis through the implementation of accrual accounting basis and full costing approach to cost allocation. Full costing approach is also known as activity-based accounting method for cost allocation. The authors also recommend some initial steps for implementation of the new cost accounting system in Croatian public hospitals.

Suggested Citation

  • Ivana Drazic Lutilsky & Berislav Zmuk & Martina Dragija, 2016. "Cost Accounting as a Possible Solution for Financial Sustainability of Croatian Public Hospitals," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 18(2), pages 5-38, December.
    • Handle: RePEc:iez:survey:ces-v18_2-2016_drazic-lutilsky-zmuk-dragija
    as

    Download full text from publisher

    File URL: http://hrcak.srce.hr/file/252680
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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. Davor VAŠIČEK & Gorana ROJE, 2010. "Accounting System in Croatian Public Healthcare Organizations: an Empirical Analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 6(6(547)), pages 37-58, June.
    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. Polyzos, Nikolaos & Karanikas, Haralampos & Thireos, Eleftherios & Kastanioti, Catherine & Kontodimopoulos, Nick, 2013. "Reforming reimbursement of public hospitals in Greece during the economic crisis: Implementation of a DRG system," Health Policy, Elsevier, vol. 109(1), pages 14-22.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Julius Aidoo-Buameh, 2014. "Political Willingness to Implement Public Sector Financial Management Reforms in Ghana - Accrual Basis of Accounting," Accounting and Finance Research, Sciedu Press, vol. 3(1), pages 1-96, February.
    2. Filip Hrůza & Petr Valouch, 2016. "Public Sector Accounting Policy Reform in the Czech Republic: Experience from Local Governments (pilot)," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2016(4), pages 17-37.
    3. Khoirul Aswar & Siti Zabedah Saidin, 2018. "The Influencing Factors On The Level Of Accrual Accounting Adoption: A Conceptual Approach," Romanian Economic Business Review, Romanian-American University, vol. 13(2), pages 30-36, June.
    4. Khoirul Aswar & Siti Zabedah Saidin, 2018. "Accrual Accounting Adoption In Java Municipalities: 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. 11(3), pages 24-30, December.
    5. Khoirul Aswar, 2019. "Factors on the Accrual Accounting Adoption: Empirical Evidence from Indonesia," 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. 12(3), pages 36-42, December.
    6. Véronique Nabelsi & Véronique Plouffe, 2019. "Breast cancer treatment pathway improvement using time‐driven activity‐based costing," International Journal of Health Planning and Management, Wiley Blackwell, vol. 34(4), pages 1736-1746, October.
    7. Chanturidze, Tata & Esau, Mike & Hölzer, Simon & Richardson, Erica, 2016. "Introducing Diagnosis-Related Groups in Kazakhstan: Evolution, achievements, and challenges," Health Policy, Elsevier, vol. 120(9), pages 987-991.
    8. Spyridou, Anastasia, 2019. "Evaluating Factors of Small and Medium Hospitality Enterprises Business Failure: a conceptual approach," MPRA Paper 93997, University Library of Munich, Germany.
    9. White, Joseph, 2013. "Budget-makers and health care systems," Health Policy, Elsevier, vol. 112(3), pages 163-171.
    10. Grigorakis, Nikolaos & Floros, Christos & Tsangari, Haritini & Tsoukatos, Evangelos, 2016. "Out of pocket payments and social health insurance for private hospital care: Evidence from Greece," Health Policy, Elsevier, vol. 120(8), pages 948-959.
    11. Endrei, Dóra & Zemplényi, Antal & Molics, Bálint & Ágoston, István & Boncz, Imre, 2014. "The effect of performance-volume limit on the DRG based acute care hospital financing in Hungary," Health Policy, Elsevier, vol. 115(2), pages 152-156.
    12. Simou, Effie & Koutsogeorgou, Eleni, 2014. "Effects of the economic crisis on health and healthcare in Greece in the literature from 2009 to 2013: A systematic review," Health Policy, Elsevier, vol. 115(2), pages 111-119.
    13. Kyriakos Souliotis & Christina Golna & Yannis Tountas & Olga Siskou & Daphne Kaitelidou & Lycourgos Liaropoulos, 2016. "Informal payments in the Greek health sector amid the financial crisis: old habits die last..," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(2), pages 159-170, March.
    14. Nikolaos Grigorakis & Christos Floros & Haritini Tsangari & Evangelos Tsoukatos, 2017. "Combined social and private health insurance versus catastrophic out of pocket payments for private hospital care in Greece," International Journal of Health Economics and Management, Springer, vol. 17(3), pages 261-287, September.
    15. Giannouchos, Theodoros V. & Vozikis, Athanassios & Koufopoulou, Paraskevi & Fawkes, Leanne & Souliotis, Kyriakos, 2020. "Informal out-of-pocket payments for healthcare services in Greece," Health Policy, Elsevier, vol. 124(7), pages 758-764.

    More about this item

    Keywords

    accrual accounting basis; cost accounting system; public hospitals; financial sustainability; statistical analysis;
    All these keywords.

    JEL classification:

    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iez:survey:ces-v18_2-2016_drazic-lutilsky-zmuk-dragija. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Doris Banicevic (email available below). General contact details of provider: https://edirc.repec.org/data/eizgghr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.