Healthcare financial management : journal of the Healthcare Financial Management Association
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Healthc Financ Manage · Sep 1999
Using activity-based costing to track resource use in group practices.
Research shows that understanding how resources are consumed can help group practices control costs. An American Academy of Orthopaedic Surgeons study used an activity-based costing (ABC) system to measure how resources are consumed in providing medical services. ⋯ They measured resource consumption by assigning costs to each process according to how much time is spent on related work activities. When group practices understand how their resources are being consumed, they can reduce costs and optimize revenues by making adjustments in how administrative and clinical staff work.