Impact of cost calculation quality on hospital performance
Impact of cost calculation quality on hospital performance

Author(s): Magdalena Kludacz-Alessandri
Subject(s): Business Economy / Management, Health and medicine and law, Accounting - Business Administration
Published by: Masarykova univerzita nakladatelství
Keywords: cost accounting; cost calculation; hospital performance; management accounting practices;
Summary/Abstract: Management accounting in hospitals has been an issue of growing interest in the management accounting literature in recent years. Managerial decisions should be based on reliable and credible cost information, whose source should be a correct and efficient cost accounting, since it is the quality of cost information that determines the value and effects of management accounting practices. It is worth adding, that management accounting practices require not only the knowledge about actual operating costs of the hospitals and health services performed by them, but also about their structure and reactions on changes in the range of services, or the number of treated patients. The aim of the article is to make an analysis and evaluation of the cost calculation quality and management accounting practices which are applicable hospitals. The article attempts to verify the hypothesis according to which the quality of cost calculation in hospitals foster the usage of cost information in managerial decisions, and it has a positive influence on the hospital performance. The empirical material was obtained from the analysis of legal Polish and English regulations, and empirical studies conducted in European hospitals. The method of the correlation analysis was utilized to analyze the data. The research confirmed that the quality of patient treatment process calculation has a positive influence on the use of cost information by the hospital’s management, which further influence the hospital’s performance.

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