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Contrasting RCC, RVU, and ABC for managed care decisions. A case study compares three widely used costing methods and finds one superior.
Healthc Financ Manage. 1996 Aug; 50(8):54-61.HF

Abstract

To obtain cost data needed to improve managed care decisions and negotiate profitable capitation contracts, most healthcare provider organizations use one of three costing methods: the ratio-of-costs-to-charges method, the relative value unit method, or the activity-based costing method. Although the ratio-of-costs to charges is used by a majority of provider organizations, a case study that applied these three methods in a renal dialysis clinic found that the activity-based costing method provided the most accurate cost data. By using this costing method, healthcare financial managers can obtain the data needed to make optimal decisions regarding resource allocation and cost containment, thus assuring the longterm financial viability of their organizations.

Authors+Show Affiliations

West TD
College of Business, Iowa State University, Ames, USA.
Balas EA
No affiliation info available
West DA
No affiliation info available

MeSH

Capitation FeeCost AllocationData CollectionDecision Making, OrganizationalFinancial AuditFinancial Management, HospitalHemodialysis Units, HospitalHospital ChargesHospital CostsManaged Care ProgramsModels, EconomicRelative Value ScalesUnited States

Pub Type(s)

Comparative Study
Journal Article

Language

eng

PubMed ID

10158925

Citation

West, T D., et al. "Contrasting RCC, RVU, and ABC for Managed Care Decisions. a Case Study Compares Three Widely Used Costing Methods and Finds One Superior." Healthcare Financial Management : Journal of the Healthcare Financial Management Association, vol. 50, no. 8, 1996, pp. 54-61.
West TD, Balas EA, West DA. Contrasting RCC, RVU, and ABC for managed care decisions. A case study compares three widely used costing methods and finds one superior. Healthc Financ Manage. 1996;50(8):54-61.
West, T. D., Balas, E. A., & West, D. A. (1996). Contrasting RCC, RVU, and ABC for managed care decisions. A case study compares three widely used costing methods and finds one superior. Healthcare Financial Management : Journal of the Healthcare Financial Management Association, 50(8), 54-61.
West TD, Balas EA, West DA. Contrasting RCC, RVU, and ABC for Managed Care Decisions. a Case Study Compares Three Widely Used Costing Methods and Finds One Superior. Healthc Financ Manage. 1996;50(8):54-61. PubMed PMID: 10158925.
* Article titles in AMA citation format should be in sentence-case
TY - JOUR T1 - Contrasting RCC, RVU, and ABC for managed care decisions. A case study compares three widely used costing methods and finds one superior. AU - West,T D, AU - Balas,E A, AU - West,D A, PY - 1996/7/6/pubmed PY - 1996/7/6/medline PY - 1996/7/6/entrez SP - 54 EP - 61 JF - Healthcare financial management : journal of the Healthcare Financial Management Association JO - Healthc Financ Manage VL - 50 IS - 8 N2 - To obtain cost data needed to improve managed care decisions and negotiate profitable capitation contracts, most healthcare provider organizations use one of three costing methods: the ratio-of-costs-to-charges method, the relative value unit method, or the activity-based costing method. Although the ratio-of-costs to charges is used by a majority of provider organizations, a case study that applied these three methods in a renal dialysis clinic found that the activity-based costing method provided the most accurate cost data. By using this costing method, healthcare financial managers can obtain the data needed to make optimal decisions regarding resource allocation and cost containment, thus assuring the longterm financial viability of their organizations. SN - 0735-0732 UR - https://www.unboundmedicine.com/medline/citation/10158925/Contrasting_RCC_RVU_and_ABC_for_managed_care_decisions__A_case_study_compares_three_widely_used_costing_methods_and_finds_one_superior_ L2 - https://medlineplus.gov/managedcare.html DB - PRIME DP - Unbound Medicine ER -