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Table 5 Accounting technical differences

From: From centralized DRG costing to decentralized TDABC-assessing the feasibility of hospital cost accounting for decision-making in Denmark

  Current cost account system (DRG foundation) Recommended cost account system (TDABC)
Cost drivers Gross margins, square meters, number of purchases etc., or negotiated rates Nursing time, physician time, operating theater time, in-patient days, clinical care units (representing time based measures of the acuity of treatment offered to different types of patients)
Activity cost pools Support departments, clinical departments Performed activities: consultation, filling documents, registering patient data, hospitalization, hotel services, care (nursing care given)
Cost data Aggregated cost data Detailed cost data on function level (e.g. salary on professional level)
Calculations Wide national averages:
Sum of total costs within a function (including overhead) divided with more detailed activity according to points
Resource cost (C) = Ʃ cost / number of activities
Detailed local resource calculations:
Simple formula:
Resource cost (C) = Quantity of resource units (Q) x Price per unit of resource (P)
More specifically becomes:
Actual Costs for patient “i” in episode period “j”:
Cij = c1j*X1ij + c2j*X2ij + c3j*X3ij + … + cNj*XNij
Where:
• Xnij = the number of units of resource n consumed by patient i in episode period j.
• Cni = the unit cost of resource n episode period j.