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A general model to compute activity-based waste disposal costs for health care products

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  • Peter T. Vanberkel
  • Saeideh Y. Moayed

Abstract

Hospitals are large producers of solid waste, of which some is benign, some is extremely hazardous, and much is in between. The cost of segregating and disposing of products in these waste streams is high, and studies have shown there is considerable potential to reduce these costs while simultaneously decreasing environmental impact. In this article we develop an activity-based costing method that assigns waste disposal costs proportionally to each product. By providing disposal cost information at this level of aggregation it is possible to directly influence purchasing decisions, identify priority products for focused interventions, and determine the ratio of a product's purchasing cost to disposal cost. The method is tested on products with different purchasing costs, disposal costs, physical characteristics, and disposal processes.

Suggested Citation

  • Peter T. Vanberkel & Saeideh Y. Moayed, 2017. "A general model to compute activity-based waste disposal costs for health care products," The Engineering Economist, Taylor & Francis Journals, vol. 62(2), pages 132-145, April.
    • Handle: RePEc:taf:uteexx:v:62:y:2017:i:2:p:132-145
    DOI: 10.1080/0013791X.2016.1173267
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