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Cost modelling in healthcare systems: a case of radiology department of a teaching hospital

Author

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  • Ifeyinwa Maria-Juliet Orji
  • Olusegun Akanbi
  • Sun Wei

Abstract

Inaccurate radiology costs data poses a huge challenge by not portraying information on actual resource consumption and not highlighting areas for possible efficiency improvement in healthcare systems. This work developed an activity-based costing (ABC) model for cost estimation of procedures in a radiology department of a teaching hospital in a developing country. The ABC model was designed in relation to the various activity groups and procedures available in radiology department of a teaching hospital in a developing country. Costs of all procedures carried out in the radiology department under study were estimated. Radiology cost is mainly dependent on the material costs, equipment costs and manpower costs. Costs of non-procedure-related activities are less than costs of procedure-related activities. Patient investigation activity costs are higher than other activity costs in radiology department. Digitised equipment could reduce patient investigation costs thereby reducing procedure costs.

Suggested Citation

  • Ifeyinwa Maria-Juliet Orji & Olusegun Akanbi & Sun Wei, 2015. "Cost modelling in healthcare systems: a case of radiology department of a teaching hospital," International Journal of Industrial and Systems Engineering, Inderscience Enterprises Ltd, vol. 19(1), pages 50-74.
    • Handle: RePEc:ids:ijisen:v:19:y:2015:i:1:p:50-74
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    Cited by:

    1. Angels Niñerola & Ana‐Beatriz Hernández‐Lara & Maria‐Victòria Sánchez‐Rebull, 2021. "Improving healthcare performance through Activity‐Based Costing and Time‐Driven Activity‐Based Costing," International Journal of Health Planning and Management, Wiley Blackwell, vol. 36(6), pages 2079-2093, November.

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