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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.