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Managing Activity-Based Funding Using Costing Data and Activity-Based Budgets
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Author(s):
Stephen A. Cole (Gold Coast University Hospital, Australia)
Copyright:
2019
Pages:
16
Source title:
Clinical Costing Techniques and Analysis in Modern Healthcare Systems
Source Author(s)/Editor(s):
Ronald Ma
(Austin Health, Australia)
DOI:
10.4018/978-1-5225-5082-2.ch006
Keywords:
Clinical Sciences
/
Health Information Systems
/
Medical Information Science Reference
/
Medicine & Healthcare
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Managing Activity-Based Funding Using Costing Data and Activity-Based Budgets
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Abstract
This chapter will show how detailed information from an activity-based costing (ABC) system can be used to support activity-based funding (ABF) by providing management with a detailed perspective of the activity and how it can be used to internally model the allocation of target activity to build an activity-based budget (ABB). By building a set of internal cost weights based on ABC data, this chapter will show how activity forecast in a funding agreement can be broken up and applied to the individual cost centers that contributed to the activity in the current year. Building an ABB provides an evidence base for the overarching hospital budget and encourages the adoption of a focus on efficiency by hospital departments.
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