Mediformatica - The Medical Informatics Portal

Mediformatica - The Medical Informatics Portal

Latest Blog Articles

Cost Accounting

E-mail Print PDF

Provide ability to monitor and control costs.
Ability to create detailed reports on comparisons of actual and standard costs, fixed and variable costs, budgets, variance analysis, service profitability, and departmental responsibility.

The following has been extracted from a recent RFP. I've included it here for your reference. It may prove useful for anyone preparing such a document.
Please feel free to comment on this list, and propose any items that you think should have been included in this list. 

Cost Accounting

Provide ability to monitor and control costs.
Ability to create detailed reports on comparisons of actual and standard costs, fixed and variable costs, budgets, variance analysis, service profitability, and departmental responsibility

>>> General
1   Ability to analyze and report standard costs , by procedure, at the departmental and cost group level
2   Ability to compute the cost of providing services to the reimbursement received for each patient and groups of patients
3   Ability to develop budgets by product line via expected number of cases and by service unit for expected volume and standard costs
4   Ability to determine the cost of service unit which might have a one-to-one correspondence with procedure coding in billing
5   Ability to utilize micro-costing and allocation methodologies
6   Ability to store past, present , and future average rates for micro-costed resources such as labor, material, and overhead
7   Ability to assign procedure codes to multiple service units, and multiple procedures to be grouped to individual service units, to facilitate 80/20 costing methods
8   Ability to store the total standard cost for each service unit, plus a breakdown by cost group
9   Ability to categorize labor, materials, and overhead for up to 10 cost groups , which can be classified as Direct or Indirect, Fixed or Variable
10   Cost group reporting to be able to analyze both standard and actual costs by groups
11   Ability to reflect cost analysis into fees schedule table

>>> Cost Management
12   Cost by unit
13   General ledger cost set ( of current, standard, average, simulated costs for present, future and past )
14   Current and GL cost sets
15   Unlimited defined cost sets and associated cost codes
16   Current cost updating method selection by unit
17   Standard and average costing
18   Current cost maintained as last or average
19   Cost planning
20   Cost freeze for cost set rollups
21   Simulated costs calculated as regular costs
22   Multiple cost categories per cost set
23   Unlimited cost elements per cost category
24   Cost elements summed vertically throughout item product structures

>>> Cost Price Calculation
25   Multiple calculation methods : top-down, bottom-up, single-level
26   Direct costing for each calculation code
27   Defined operation rates, surcharges, subcontracting cost per supplier, simulated purchase price for each calculation code
28   Calculated price of finished goods from the simulated purchase price
29   Calculation comparison reporting
30   Detailed reporting of calculations for analysis
31   Reporting and display of performed calculations
32   Retained standard cost price over parameter-controlled time period
33   Ability to calculate spending volume and labor variance
34   Ability to handle labor costing in hours and amounts

>>> Activity Based Costing
35   Provide for allocation of costs from a cost category to a particular activity
36   Provide for allocation of activity costs to cost objects using cost drivers
37   Provide for activity analysis per cost object
38   Support generation of total amount per activity per cost object
39   Ability to apply surcharge as a fixed surcharge amount to a cost calculation code used in costing items, item groups and projects in cost accounting
40   Support creation of user-defined cost pools by grouping selected GL accounts
41   Provide for user-defined activity-based distribution/allocation rules
42   Provide rule tables for grouping related rules, traditional and activity-based allocation rules, specific unit rules, use of pool or resources rules
43   Provide pool rules, defining distribution portions/percentages/amounts by class, sub-class level, and by percent variable/fixed, by specific fixed costs
44   Provide resource rules, defining overhead expenses as overhead for direct costing
45   Provide netting rule, via automatic deductions to avoid duplication of overhead expenses
46   Support cost pool distribution method
47   Support activity costing distribution, statistically-based or activity-based
48   Support consumption distribution, quantity, value or volume based
49   Support cost run calculation of cost profiles
50   Provide user named cost profiles: for different production plans, products, operations, etc.. based on selected product volume/mix, overhead spending, and distribution methods
51   Support cost run types: actual, standard
52   Ability to generate costing production plans

>>> Departmental Budgeting
53   Ability to develop profile service unit usage by user defined product line(s) using past data
54   Ability to obtain expected volumes of service units and expected standard costs by department and cost group
55   Budgeting by product line(s) and by service units based on actual volumes for previous periods
56   Ability to use historical data for standard cost development
57   Ability to manipulate costing in both Egyptian Pounds

>>> Queries
58   Modeling facility o answer ‘what if’ situation in real time

>>> Reports
59   A detailed patient service unit report indicating the total standard cost of providing services to a patient and compares this cost to reimbursement activity
60   Patient cost analysis reports provide a comparison of cost, change, and reimbursement data in detailed or summarized format ) for a group of selected patients
61   Department variance reports containing cost incurred and related variances at the department level
62   Department labor variance analysis report
63   Details labor cost by department, cost groups, and job code
64   Flexible budget report details, by department
65   Comparison of cost based on both fixed and variable amounts
66   Produce revenue and profitability statistical reports

>>> Integration
67   Billing module
68   General Ledger
69   Human Resource
70   Material Management
71   Service units as they relate to billing and nursing procedures

Last Updated ( Tuesday, 28 October 2008 01:06 )  

Google Translate


DrugFormatica provides a simple drug database providing information about FDA approved medications.
ProcFormatica provides a simple medical procedures database including information about the latest ICD-10-PCS codes.
PsychFormatica provides a simple medical procedures database including information about the latest DSM IV codes.

Healthcare IT in Egypt

In this section you'll find a list of companies and organizations working in the healthcare IT sector in Egypt.

Read more here...


Who's Online

We have 55 guests online


Members : 1
Content : 543
Web Links : 68
Content View Hits : 3254613




Medical Informatics

Medical informatics has to do with all aspects of understanding and promoting the effective organization, analysis, management, and use of information in health care.


Hospital Information Systems

A Hospital Management Information Systems (HMIS) is a comprehensive, integrated information system designed to manage the administrative, financial and clinical aspects of a hospital.



Mediformatica's videos section is rapidly becoming one of the largest health informatics video libraries linking to over 250 videos to this date...


Mediformatica's Blog

Mediformatica's Blog is frequently updated with the latest and most exciting news and reviews related to the subject of Medical Informatics.