Cost Analysis of Home Care with Activity-Based Costing(ABC)

Lee, Su Jeong

Abstract

PURPOSE
This study was carried out to substantiate the application process of activity-based costing on the current cost of hospital home care (HHC) service. The study materials were documents, 120 client charts, health insurance demand bills, salary of 215 HHC nurses, operating expense, 6 HHC agencies, and 31 HHC nurses. METHOD: The research was carried out by analyzing the HHC activities and then collecting labor and operating expenses. For resource drivers, HHC activity performance time and workload were studied. For activity drivers, the number of HHC activity performances and the activity number of visits were studied. RESULT: The HHC activities were classified into 70 activities. In resource, the labor cost was 245wonper minute, operating cost was 9,570won per visit and traffic expense was an average of 12,750won. In resource drivers, education and training had the longest time of 67 minutes. Average length of performance for activities was 13.7 minutes. The workload was applied as a relative value. The average cost of HHC was 62,741won and the cost ranged from 55,560won to 74,016won. CONCLUSION: The fixed base rate for a visit in the current HHC medical fee should be increased. Exclusion from the current fee structure or flexible operation of traveling expenses should be reviewed.