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Table 1 Billing cost items and their operational definitions (NT$)

From: Incremental analysis of the reengineering of an outpatient billing process: an empirical study in a public hospital

Cost items

Operational definition

Cost

Direct costs

  

Labor

Cost × Quantity ÷ (1- idle time%) × T*

Cost/min: nurse 5.49; clerk 4.68; Idle time: 20%; T = activity time ÷ working time

Material

Cost × Quantity

 

Depreciation

  

Buildings/construction

Cost of building ÷ depreciation life × T

Cost of building/m2 = 21,749 Depreciation life = 50 yrs

Machinery/equipment

Cost ÷ Depreciation life × T

 

Repair and maintenance

  

Buildings/construction

Cost of building repair × area × T

Repair cost of building/m2 = $59.14 (cash billing area = 18.5 m2; smartcard area = 13.8 m2)

Machinery/equipment

Cost × equipment repair% × T

Equipment repair% = 2.42%

Indirect costs

  

Service

Direct cost ÷ (1-Service%) × Service% × T

Service% = 11.23%

Administration

(Direct cost + Service costs) × Administration% × T

Administration% = 3.58%

Research & training

(Direct cost + Service costs) × R&T% × T

R&T% = 2.36%

Other costs

  

Patent royalty

Amount × 1.5%

 

Business tax

Amount × 0.05%

 
  1. Working time = 132 working hours per month × 60 min × 12 months.