title: How much does excess inpatient capacity really cost?
abstract: Traditional healthcare cost-accounting methods determine the cost of unused inpatient beds by calculating the fixed cost per patient-day using the number of patient days of inpatient care expected to be provided. Unfortunately, this approach can result in a misleading estimate of fixed costs per patient-day that fluctuate over time as expected levels of inpatient care fluctuate. A recommended alternative approach, practical capacity cost accounting, determines the cost of unused inpatient beds by calculating fixed costs per patient-day using the maximum feasible patient days of inpatient care that can be provided in a year. This approach yields stable fixed costs for more accurate costing of unused capacity and better long-range planning and decision making.
authors.affiliation: Grand Valley State University, Allendale, MI, USA.
authors.forename: P R
authors.initials: PR
authors.lastname: Sopariwala
mesh_terms: D000066:Accounting / Q000379:methods*; D001509:Bed Occupancy / Q000191:economics*; D003361:Cost Allocation / Q000379:methods; D005377:Financial Management, Hospital / Q000379:methods*; D006742:Hospital Bed Capacity / Q000191:economics*; D017721:Hospital Costs / Q000145:classification*; D006801:Humans; D014481:United States