Development of an Activity-Based Costing Model for Implementing Capitation at Naval Medical Center San Diego.

Abstract

The purpose of this research is to develop a financial model for Naval Medical Center San Diego for the calculation of an appropriate capitation rate under capitation budgeting. The current cost accounting system at Naval Medical Center San Diego and records of the Military Expense and Reporting System and the Uniform Management Report were analyzed to determine their usefulness in providing the information for and implementing capitation budgeting. An accounting model based on the principles of activity-based costing was used to develop a financial model and was applied to the current accounting system at Naval Medical Center San Diego. The research showed the current accounting system used at Naval Medical Center San Diego and the Military Expense and Reporting System and the Uniform Management Report do not provide the needed financial information for the calculation of an appropriate capitation rate. The accounting system will need to be realigned to identify expenses by activities versus cost categories. The analysis done for this thesis indicates that activity-based costing can provide a more accurate measure of the cost of services (outputs) and facilitate in the calculation of an appropriate capitation rate for Naval Medical Center San Diego.

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Document Details

Document Type
Technical Report
Publication Date
Dec 12, 1996
Accession Number
ADA323615

Entities

People

  • Ives C. Jones

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Biomedical

DTIC Thesaurus Topics

  • Accounting
  • Business Administration

Readers

  • Defense Financial Management and Audit.
  • Life Cycle Cost Analysis
  • Maritime and Naval Warfare Studies