ABC Method in Healthcare Institutions Based on Business Processes

Hospital, as an object implementing the ABC method has a more complex structure of output (services), users, activities and financial flow from ordinary production company. Making appropriate cost structures, the structure of business processes and cost drivers requires detailed knowledge and study of the processes within the hospital system for the application of ABC methods at the organizational level. Detailed knowledge of the hospital system will help the management of hospitals in use of limited resources and in savings with the constant rising costs of health care services. The key objective of this paper is to show possible model regarding ABC implementation in healthcare institution in Republic of Croatia based on business processes. The model has identified internal business processes and associated costs incurred attributable to provided services in a public hospital. The paper is presenting field research, snap shots of business processes and employee interviews and analysis of accounting data about the costs attributable to business processes.