J Korean Acad Nurs.  2008 Feb;38(1):161-171. 10.4040/jkan.2008.38.1.161.

An Analysis of Cost and Profit of a Nursing Unit using Performance-Based Costing: Case of a General Surgical Ward in a General Hospital

• Lim JY

• KMID: 1405650
• DOI: http://doi.org/10.4040/jkan.2008.38.1.161

Abstract

PURPOSE: The aim of this study was to analysize net income of a surgical nursing ward in a general hospital. METHOD: Data collection and analysis was conducted using a performance-based costing and activity-based costing method. RESULT: Direct nursing activities in the surgical ward were 68, indirect nursing activities were 10. The total cost volume of the surgical ward was calculated at won 119,913,334.5. The cost volume of the allocated medical department was won 91,588,200.3, and the ward consumed cost was won 28,325,134.2. The revenue of the surgical nursing ward was won 33,269,925.0. The expense of a surgical nursing ward was 28,325,134.2. Therefore, the net income of a surgical nursing ward was won 4,944,790.8. CONCLUSION: We suggest that to develop a more refined nursing cost calculation model, a standard nursing cost calculation system needs to be developed.

Keyword

Nursing services; Cost

MeSH Terms

Costs and Cost Analysis
General Surgery/*economics
Hospitals, General/*economics
Humans
Nursing Service, Hospital/*economics
Task Performance and Analysis

Reference

1. AAA (American Accounting Association). Tentative statement of cost concepts underlying reports for management purposes. Accounting Rev. 1956. 31:183.

2. Baker JJ, Boyd GF. Activity-based costing in the operating room at valley view hospital. J Health Care Finance. 1997. 24(1):1–9.

3. Choi JH. Hospital accounting. 2000. Seoul: Daemyoung.

4. Choi JH, Son YH. Hospital management accounting. 2003. Seoul: Daemyoung.

5. Kang KH. Analysis of nursing activities and cost of nursing service based on the ABC system. JKANA. 1999. 5:389–400.

6. Kim HR. The study on the cost analysis based on ABC system in the department of laboratory medicine. 2003. Seoul: Yonsei University;Unpublished master's thesis.

7. Kim MJ. Cost analysis of community-based home health care versus hospital-based home health care. 2000. Seoul: Yonsei University;Unpublished master's thesis.

8. Lee SB. A case study on the cost allocation standard among clinic centers in general hospitals-Y hospital's case. 2001. Jeonju: Jeonju University;Unpublished master's thesis.

9. Lee SJ. Cost analysis of home health care with activity-based costing (ABC). 2003. Seoul: Yonsei University;Unpublished doctoral dissertation.

10. Lee SJ, Lee SH, Seo JH. Hospital cost accounting. 2001. Seoul: Imagination.

11. Lim JM. A study on the refining a cost system in hospital-performance evaluation of clinic departments. 2000. Gwangju: Chonnam National University;Unpublished master's thesis.

12. Lim JY. The trend analysis of nursing cost and case analysis. 2007. Seoul: Korea University;Unpublished master's thesis.

13. Park JH, Song MS, Sung YH, Cho JS, Sim WH. Estimation of nursing costs for hospitalized patients using the resourcebased relative value scale. 1998. Seoul: KNA.

14. Park JH, Sung YH, Song MS, Cho JS, Sim WH. The classification of standard nursing activities in Korea. J Korean Acad Nurs. 2000. 30:1411–1426.

15. Park DY, Brandt MT, Levine SP, Paik NW. Activity-based costing and management applied to occupational and environmental health. Korean Ind Hyg Assoc J. 1996. 6(1):144–155.

16. So SK. A case study on activity-based costing of hospital. 2003. Busan: Inje University;Unpublishedmaster's thesis.

17. Storfjell JL, Jessup S. Bridging the gap between finance and clinical operations with activity-based cost management. J Nurs Adm. 1996. 26:12–17.

18. Udpa S. Activity-based costing for hospitals. Health Care Manag Rev. 1996. 21:83–96.

19. Yashikawa T, Inners J, Mitchell F, Tanaka M. Contemporary cost management. 1993. London: Chapman & Hall.