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How much does excess inpatient capacity really cost?



How much does excess inpatient capacity really cost?



Healthcare Financial Management 51(4): 54



Traditional healthcare cost-accounting methods determine the cost of unused inpatient beds by calculating the fixed cost per patient-day using the number of patient days of inpatient care expected to be provided. Unfortunately, this approach can result in a misleading estimate of fixed costs per patient-day that fluctuate over time as expected levels of inpatient care fluctuate. A recommended alternative approach, practical capacity cost accounting, determines the cost of unused inpatient beds by calculating fixed costs per patient-day using the maximum feasible patient days of inpatient care that can be provided in a year. This approach yields stable fixed costs for more accurate costing of unused capacity and better long-range planning and decision making.

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Accession: 046280140

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PMID: 10166279


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