On two different paragraph give your personal opinion to Kent Acheson and Kelly Gonzalez

On two different paragraph give your personal opinion to  Kent Acheson and  
Kelly Gonzalez  

Kent Acheson 

Cost Accounting assigns costs to individual items in a process.  For example, a hospital radiology department (x-ray) will assign how much it costs to run the department, including lights, each x-ray technician, x-ray technician manager, radiology supplies, etc.  Then, when any other department in the hospital uses the radiology department a specific cost will be assigned based on some factor, such as the amount of time used, or the number of x-rays ordered.  This is known as a Cost Accounting System.  

This system usually takes a lot of time and energy to implement, and is the reason why it is not more widely used; notwithstanding the time and energy, the Cost Accounting System is more efficient in assigning costs, and can help determine which departments are losing money.

In week five the information covered regarding cost behaviors, including issues as fixed and variable costs; direct and indirect costs; and total, average, and marginal costs.  Specific tools and techniques widely used for cost analysis, such as break-even (BE) analysis.  Also covered was how organizations allocate costs from some departments to other departments and ultimately to patients and products.  We focused primarily on Activity Based Costing (ABC) and variations of that.  We ventured into metrics and their worth to comparisons within an industry.

Hospitals use metrics to gauge how they are doing comparatively to other like institutions.  Cleverly and Cleverley (2011) introduced a new measure of hospital volume that is more realistic than other metrics commonly used today, healthcare finance leaders can better compare activity and costs- and identify savings potential.  Equivalent patient units is a more reliable measure of a hospital’s patient volume than adjusted discharges or adjusted patient days because it better accounts for both inpatient and outpatient volumes (Cleverley & Cleverley, 2011).  Three elements are required to calculate equivalent patient units:

        equivalent discharges,

        equivalent visits, and

        the payment ratio (Cleverley & Cleverley, 2011). 

All of these elements are available through publicly available data, making it possible for hospitals to immediately adopt this new metric and, thereby, better understand their potential for savings (Cleverley & Cleverley, 2011).

Reference

Cleverley, W. O., & Cleverley, J. O.  (2011). A better way to measure volume–and benchmark costs.  hfm (Healthcare Financial Management), 65(3), 78.

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