’E-HCM’ Project: Cost Calculation Model for Surgical Procedures

The economic and financial crisis has also had an important impact on the healthcare sector. Available resources have decreased, while at the same time costs as well as demand for healthcare services are on the rise (Mladovsky et al., 2012; Oduncu, 2012). This coalescing negative impact on availability of healthcare resources is exacerbated even further by a widespread ignorance of management accounting matters. Little knowledge about costs is a strong source of costs augmentation. Although it is broadly recognized that cost accounting has a positive impact on healthcare organizations, it is not widespread adopted (Kaplan/Porter, 2011). Hospitals are essential components in providing overall healthcare (McKee/Healy, 2002). Operating rooms are critical hospital units not only in patient safety terms but also in expenditure terms (Guerriero,/Guido, 2011; Maryamaa/Kirvela 2007). Understanding OR procedures in the hospital provides important information about how health care resources are used (Elixhauser/Roxanne, 2007). There have been several scientific studies on management accounting in healthcare environments (see for example van Rensburg/Jassat 2011; Lievens/Van den Bogaert/Kesteloot 2003; Chan 1993) and more than ever there is a need for innovation, particularly by connecting business administration research findings to modern IT tools. IT adoption constitutes one of the most important innovation fields within the healthcare sector, with beneficial effects on the decision making processes (Tan, 2005). The e-HCM (e-Healthcare Cost Management) project consists of a cost calculation model which is applicable to Business Intelligence. The cost calculation approach comprises elements from both traditional cost accounting and activity-based costing. Direct costs for all surgical procedures can be calculated through a seven step implementation process.