title: Profitable capitation requires accurate costing.
abstract: In the name of costing accuracy, nurses are asked to track inventory use on per treatment basis when more significant costs, such as general overhead and nursing salaries, are usually allocated to patients or treatments on an average cost basis. Accurate treatment costing and financial viability require analysis of all resources actually consumed in treatment delivery, including nursing services and inventory. More precise costing information enables more profitable decisions as is demonstrated by comparing the ratio-of-cost-to-treatment method (aggregate costing) with alternative activity-based costing methods (ABC). Nurses must participate in this costing process to assure that capitation bids are based upon accurate costs rather than simple averages.
authors.affiliation: College of Business and Public Administration, University of Missouri-Columbia, USA.
authors.forename: D A
authors.initials: DA
authors.lastname: West
authors.forename: L L
authors.initials: LL
authors.lastname: Hicks
authors.forename: E A
authors.initials: EA
authors.lastname: Balas
authors.forename: T D
authors.initials: TD
authors.lastname: West
mesh_terms: D002204:Capitation Fee; D005376:Financial Management; D017048:Health Care Costs; D006801:Humans; D007182:Income; D008329:Managed Care Programs / Q000191:economics*; D009739:Nursing Services / Q000191:economics; D010530:Peritoneal Dialysis / Q000191:economics* / Q000451:nursing; D006435:Renal Dialysis / Q000191:economics* / Q000451:nursing