Cost accounting, management control, and planning in health care.
Advantages and pharmacy applications of computerized hospital management-control and planning systems are described. Hospitals must define their product lines; patient cases, not tests or procedures, are the end product. Management involves operational control, management control, and strategic planning. Operational control deals with day-to-day management on the task level. Management control involves ensuring that managers use resources effectively and efficiently to accomplish the organization's objectives. Management control includes both control of unit costs of intermediate products, which are procedures and services used to treat patients and are managed by hospital department heads, and control of intermediate product use per case (managed by the clinician). Information from the operation and management levels feeds into the strategic plan; conversely, the management level controls the plan and the operational level carries it out. In the system developed at New England Medical Center, Boston, Massachusetts, the intermediate product-management system enables managers to identify intermediate products, develop standard costs, simulate changes in departmental costs, and perform variance analysis. The end-product management system creates a patient-level data-base, identifies end products (patient-care groupings), develops standard resource protocols, models alternative assumptions, performs variance analysis, and provides concurrent reporting. Examples are given of pharmacy managers' use of such systems to answer questions in the areas of product costing, product pricing, variance analysis, productivity monitoring, flexible budgeting, modeling and planning, and comparative analysis.(ABSTRACT TRUNCATED AT 250 WORDS)
Siegrist
R B
RB
Transition Systems, Inc., Boston, MA 02111.
Blish
C S
CS
D001900:Boston; D002017:Budgets; D003363:Cost Control; D003660:Decision Support Systems, Management; D006745:Hospital Bed Capacity, 300 to 499; D006752:Hospital Planning; D008331:Management Information Systems; D008962:Models, Theoretical; D010607:Pharmacy Service, Hospital / Q000458:organization & administration*; D010934:Planning Techniques; D011357:Product Line Management; D011445:Prospective Payment System