Time-Driven Activity based Costing Method for Calculating Unused Capacity of Endoscopy Services: A Case Study of Xyz Hospital

Roberta Fifin Amandaningrum, Thomas H Secokusumo

2019

Abstract

Competition in the healthcare industry and the growth of Endoscopy services prompted XYZ Hospital to evaluate the cost of its services. Management of quality and cost control are key to success in applying value-based healthcare strategy. The purpose of this case study is to demonstrate how Time-Driven Activity Based Costing (TDABC) method is applied in Endoscopy unit of XYZ Hospital by understanding the service processes and the indirect cost allocation using time as the main cost driver so that unused capacity can be identified, and capacity-based income statement can be prepared for better cost control. This is a descriptive case study with qualitative and quantitative approaches through cost analysis in the Endoscopy unit. Data collection based on XYZ Hospital database from January to December 2017 and the results of interviews and a direct observation conducted in October and November 2018. The result of this case study concludes that TDABC enables detail and accurate cost and profitability analysis of endoscopy services where indirect costs are allocated according to the actual usage of resources. Therefore, the efficiency indicator for cost control can be clearly defined and more measurable by showing the unused capacity of each resource group in the capacity-based income statement.

Paper Citation

in Harvard Style

Amandaningrum R. and Secokusumo T. (2019). Time-Driven Activity based Costing Method for Calculating Unused Capacity of Endoscopy Services: A Case Study of Xyz Hospital.In Proceedings of the 2nd International Conference on Inclusive Business in the Changing World - Volume 1: ICIB, ISBN 978-989-758-408-4, pages 380-387. DOI: 10.5220/0008431503800387

in Bibtex Style

@conference{icib19,
author={Roberta Fifin Amandaningrum and Thomas H Secokusumo},
title={Time-Driven Activity based Costing Method for Calculating Unused Capacity of Endoscopy Services: A Case Study of Xyz Hospital},
booktitle={Proceedings of the 2nd International Conference on Inclusive Business in the Changing World - Volume 1: ICIB,},
year={2019},
pages={380-387},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0008431503800387},
isbn={978-989-758-408-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Inclusive Business in the Changing World - Volume 1: ICIB,
TI - Time-Driven Activity based Costing Method for Calculating Unused Capacity of Endoscopy Services: A Case Study of Xyz Hospital
SN - 978-989-758-408-4
AU - Amandaningrum R.
AU - Secokusumo T.
PY - 2019
SP - 380
EP - 387
DO - 10.5220/0008431503800387