How to improve allocation of support service costs
Hogan, A.J.; Marshall, R.M.
Healthcare Financial Management Journal of the Healthcare Financial Management Association 44(2): 42; 46 48 Passim
1990
ISSN/ISBN: 0735-0732 PMID: 10145210 Document Number: 359659
Better accounting for support service costs at outpatient facilities involves distinguishing between fixed and variable expenses, then creating separate budgets for them. To simplify this step, financial managers can create a surrogate, such as the number of patient visits, to represent service activity. Once this is completed, separated costs are allocated by using criteria that recognize short-term and long-term service use.