Managing capital and administrative (indirect) costs to achieve strategic objectives: the dialysis clinic versus the outpatient clinic.
During the race for costing accuracy in health care, managers should acknowledge the equal importance of interdepartmental relations. Although newer costing systems can produce more accurate numbers, greater costing accuracy may not always strengthen the organization. This article demonstrates that subsidizing some capital and administrative (indirect) costs for select hospital departments may help to achieve strategic management objectives.
West
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College of Business and Public Administration, University of Missouri-Columbia, USA.
West
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Malone
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D000066:Accounting / Q000379:methods*; D000554:Ambulatory Care Facilities / Q000191:economics*; D003361:Cost Allocation / Q000379:methods*; D006436:Hemodialysis Units, Hospital / Q000191:economics; D006801:Humans; D006435:Renal Dialysis / Q000191:economics*; D014481:United States