William A. Kramer and Assoc., Inc.
Financial Management Solutions for
Small and Medium Sized Hospitals
Cost Accounting Reports
The key to a successful cost accounting program is the ability to produce reliable reports on a regular basis that provide useful tools for management.
Reliability stems from a confidence in the cost calculation. When cost or profitability is challenged, the reports must be able to stand the scrutiny of critics who might have reason to cast doubt on the credibility of the figures. Standard costs are studied costs of each line item on the hospital's service master as opposed to cost allocations.
Regularity requires that the reports be produced as a normal result of closing the books at the end of the month. If the hospital's mainframe computer is capable of retaining these costs and producing the reports, there is an advantage to the accounting staff. If not, the reports can be produced in a day on a properly equipped personal computer by a competent operator.
The following reports are typically used by management to monitor operations on a monthly basis. The kinds and number of reports are almost limitless.
Profitability
 | By payer, inpatient and outpatient
| By employer, inpatient and outpatient
| By physician, inpatient and outpatient
| By DRG, by physician, inpatient
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Pricing
| Per diem inpatient cost by payer
| Per diem inpatient cost by employer
| Per diem inpatient cost per DRG
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Management
| Utilization of services by physician
| Costing and tracking of critical paths
| Cost comparisons between staff physicians by DRG
| Demographics of patients by zip code
| Demographics and costs of patients by age Budget forecasting
| Productivity tracking by department
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Click here to see example Profit by Payer spreadsheet
The Argument for Standard Cost