Standard costs for healthcare providers.
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Biomedical subjects
Publications and source records attributed to J D Suver.
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The results of a study and a computer model designed to predict the costs of a potential merger of three hospitals rely on a statistically based cost-prediction model. This model was adapted to reflect several different merger options, and the future costs of the three unmerged hospitals were simulated using a stochastic simulation model.
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The need to use health care resources effectively and efficiently has led to increased interest in developing a "should cost" approach to performance measurement. The development of appropriate standards and the separation of fixed costs into surrogate variable and capacity components can provide a useful tool for managers to measure performance. This article develops a framework for evaluating the utilization of fixed costs in providing output.
Healthcare providers face increasing financial risk as the federal government continues to refine the DRG-based prospective payment system. Healthcare providers that survive must establish systems that provide information in resource need, consumption and cost. The process illustrated in this article will help healthcare providers identify and establish the necessary systems.