A Diagnosis Related Group Costing Method
Abstract
This study reviewed five methods of cost accounting to examine a diagnosis-related group costing method at Reynolds Army Community Hospital. The five cost accounting methods reviewed were: (1) traditional or conventional cost accounting: (2) the Military Health Services Medical Expenses Performance Reporting System (MEPRS): (3) activity-base costing: (4) standard cost profiles and standard treatment protocols: and (5) microcosting. Microcosting and Cleverleys standard cost profiles provided the structure for this study. Microcosting is the process of closely examining the actual inputs or resources consumed by a particular patient or service. Standard cost profiling is a job order costing approach. Standard cost profiles identify the fixed, variable, direct, and indirect costs of producing a service unit. The study concludes that the utilization of microcosting provides additional information that is useful in understanding the actual costs associated with a specific DRG. This study also concludes that microcosting in the present military medical cost accounting environment, while time consuming, provides a much better appreciation of the departmental resources used or consumed by each service-unit.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1999
- Accession Number
- AD1200035
Entities
People
- Nathaniel Todd