Short answer

Designers and operational managers in healthcare settings should advocate for and implement TDABC to gain a precise understanding of service costs, enabling more informed financial and operational strategies.

Field
Commercial Production
Source
Jurnal Aisyah Jurnal Ilmu Kesehatan (2023)
Method
Qualitative Case Study
Evidence
Strong effect

Implementing a Time-Driven Activity-Based Costing (TDABC) model accurately calculates the unit cost of medical procedures, highlighting potential revenue shortfalls compared to existing tariff systems. This commercial production research insight is drawn from a 2023 study published in Jurnal Aisyah Jurnal Ilmu Kesehatan. Using Qualitative case study, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Designers and operational managers in healthcare settings should advocate for and implement TDABC to gain a precise understanding of service costs, enabling more informed financial and operational strategies.

Study
Commercial ProductionRecentStrong effect

Time-Driven Activity-Based Costing (TDABC) reveals a 11% discrepancy in elective C-section service tariffs.

Implementing a Time-Driven Activity-Based Costing (TDABC) model accurately calculates the unit cost of medical procedures, highlighting potential revenue shortfalls compared to existing tariff systems.

Jurnal Aisyah Jurnal Ilmu Kesehatan · 2023

01

Key Findings

  • 01The unit cost of an elective Caesarean section without complications, calculated using TDABC, was 4,421,217.04 IDR.
  • 02There was a difference of 553,983 IDR (11%) between the calculated unit cost and the INA-CBG's claims for the procedure.
02

Application

Design takeaway

Designers and operational managers in healthcare settings should advocate for and implement TDABC to gain a precise understanding of service costs, enabling more informed financial and operational strategies.

How to apply

Healthcare institutions can apply TDABC by identifying all activities involved in a service, determining the time required for each activity, calculating the cost per unit of time for resources, and then multiplying activity times by resource costs to derive the total cost of the service.

Project actions

  • 01When costing a product or service, consider all the small steps and the time/resources involved.
  • 02Use a structured method like TDABC to ensure no costs are missed.
03

Method & Evidence

AimTo determine the unit cost of elective Caesarean sections without complications using the Time-Driven Activity-Based Costing (TDABC) model and compare it to existing hospital tariffs.
MethodQualitative Case Study
ProcedureThe study involved mapping all activities associated with elective Caesarean sections from patient admission to discharge. Time spent on each activity was recorded, and resource costs were allocated using the TDABC method to calculate the unit cost of the procedure. This calculated cost was then compared to the hospital's current tariff.
ContextPrivate Mother and Child Hospital, Yogyakarta

Variables

IVActivities involved in elective C-section, Time spent on activities, Cost of resources.
DVUnit cost of elective C-section.
CVElective C-section without complications, Private Mother and Child Hospital setting.
04

Strengths & Limitations

Strengths

  • +Provides a more accurate and detailed cost allocation than traditional costing methods.
  • +Focuses on the time required to perform activities, which is often a key driver of cost.

Limitations

It can be time-consuming to accurately track all activities and their associated times. The accuracy of the cost depends heavily on the quality of the time and resource data collected.

Reliability & validity

Reliability would be enhanced by having multiple individuals time the same activities to ensure consistency. Validity is strengthened by ensuring all relevant activities and resource costs are comprehensively identified and included in the model.

Think critically

How might the complexity of tracking time and resources in a real-world design project affect the accuracy of a TDABC analysis?

05

Design Principles

"Accurate cost attribution is fundamental to sustainable service provision."

Understanding the true cost of services is crucial for financial sustainability in healthcare. Inaccurate pricing can lead to undercharging, impacting profitability and the ability to reinvest in quality care. TDABC provides a robust framework for identifying all cost drivers and allocating them precisely.

06

What This Means for Your Design

This study shows that hospitals need to carefully calculate the real cost of medical procedures, like C-sections, using a detailed method called TDABC. They found that the hospital was charging less than the actual cost, which could cause financial problems.

How to use in your project

  • 1.Use the TDABC methodology to calculate the unit cost of your designed product or service, detailing each activity and resource cost.
  • 2.Compare your calculated cost to potential market prices or existing solutions to identify areas for cost optimization or pricing strategy.
07

Add to My Project

08

Quick Cite

Paragraph starter

The Time-Driven Activity-Based Costing (TDABC) model was employed to accurately determine the unit cost of [your product/service]. This involved mapping all constituent activities, quantifying the time and resources allocated to each, and calculating the cost per unit of activity. The resulting unit cost of [calculated cost] highlights the true economic investment required for [your product/service], providing a robust foundation for pricing and financial strategy.

09

Source

Jurnal Aisyah Jurnal Ilmu Kesehatan

Unit Cost Calculation of Elective Caesarean section without Complications Based on The Time-Driven Activity-Based Costing Model

journal · 2023

View source

Questions About This Research

What does the research say about time-driven activity-based costing (tdabc) reveals a 11% discrepancy in elective c-section service tariffs?
Designers and operational managers in healthcare settings should advocate for and implement TDABC to gain a precise understanding of service costs, enabling more informed financial and operational strategies. Evidence: Jurnal Aisyah Jurnal Ilmu Kesehatan (2023).
Why does "Time-Driven Activity-Based Costing (TDABC) reveals a 11% discrepancy in elective C-section service tariffs." matter for design?
Understanding the true cost of services is crucial for financial sustainability in healthcare. Inaccurate pricing can lead to undercharging, impacting profitability and the ability to reinvest in quality care. TDABC provides a robust framework for identifying all cost drivers and allocating them precisely.
How can designers apply this research?
Designers and operational managers in healthcare settings should advocate for and implement TDABC to gain a precise understanding of service costs, enabling more informed financial and operational strategies.
What were the main findings?
The unit cost of an elective Caesarean section without complications, calculated using TDABC, was 4,421,217.04 IDR.. There was a difference of 553,983 IDR (11%) between the calculated unit cost and the INA-CBG's claims for the procedure.
What research method was used?
Qualitative Case Study.
How strong is the evidence?
Evidence strength is rated Strong effect, based on a 2023 journal from Jurnal Aisyah Jurnal Ilmu Kesehatan.
What should I do differently in my next project?
Healthcare institutions can apply TDABC by identifying all activities involved in a service, determining the time required for each activity, calculating the cost per unit of time for resources, and then multiplying activity times by resource costs to derive the total cost of the service.
What are the limitations?
The study focused on a specific procedure (elective C-section without complications) and may not be generalizable to all medical services or to cases with complications.