Most countries are concerned with the efficiency of health services delivery. Despite the level of resources devoted to hospitals and the health sector, there is a growing gap between available and required resources. This gap has led many countries to explore ways to generate additional revenue resources for their hospitals and health systems. However, there is need for effective management of the costs of operating hospitals to reduce wastage. WHO estimated that wastage accounts for as much as 40 per cent of the available resources for health services in the Americas (Parker and Newbrander, 1993). A study in Malawi estimated that simple management correction of inefficient practices and costing could result in a savings of 44 % of that nation's major hospital non-personnel recurrent costs. Adequate cost information can help set accurate prices, increase revenue and enable hospitals to achieve service delivery objectives.
HOW PARTICIPANTS WILL BENEFIT
At the end of the course, participants will be able to:
- Define the major and relevant activity areas of the hospital;
- Gather information on the services provided or the output of the hospital
- Determine measurable cost units for services provided and estimating costs
For those units;
- Apply the Activity based costing methodology to determine unit costs and
allocate indirect costs.
- Determine the labour and other recurrent costs
- Ascertain the capital costs of the hospital
- Review and use the hospital cost summary
- Apply Cost Analysis Tools.
WHO SHOULD ATTEND?
Managers, consultants and staff of health care facilities, owners of private hospital and clinics.
The focus will be on the application of a number of Cost Analysis Tools to the health sector.