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Ko and Park: An Empirical Analysis of Costs related to Nursing Practice
Original Article

Journal of Korean Academy of Nursing Administration 2017; 23(2): 139-150.

Published online: 31 March 2017

DOI: https://doi.org/10.11111/jkana.2017.23.2.139

An Empirical Analysis of Costs related to Nursing Practice

Yu Kyung Ko1, Bo-Hyun Park2

1College of Medicine, Wonkwang University, Korea.

2Department of Nursing, Changwon National University, Korea.

Corresponding author: Park, Bo-Hyun. Department of Nursing, Changwon National University, 20 Changwondaehak-ro, Uichang-gu, Changwon 51140, Korea. Tel: +82-55-213-3575, Fax: +82-55-213-3579, bhpark@changwon.ac.kr

Received 31 October 2016       Revised 7 January 2017       Accepted 9 February 2017

Copyright © 2017 Korean Academy of Nursing Administration

(open-access):

This is an open access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0/), which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Purpose

The purpose of this study was to identify nursing service costs associated with all health care costs incurred by the institution.

Methods

This study was an empirical case study research in which the nursing cost was separated from total medical cost. The nursing cost index was calculated through a cost allocation method after summarizing costs for personnel, raw materials and administration of each department in one public hospital. The 2014 budget plan, published in ‘Public Hospitals Alert’, was used as data and the data were analyzed using the Microsoft Office EXCEL 2013 program.

Results

When comparing total medical costs and nursing costs, the nursing cost were 27.14% of the total medical cost. The nursing cost per nurse per hour was calculated as ₩29,128 The nursing cost per inpatient per day was calculated as ₩157,970, and the administration cost per patient was calculated as ₩133,710.

Conclusion

The results of the research present the process of cost allocation of specific cost elements in the hospital and evidence for administrative costs which in the past have been only vaguely formulated. These are the significant implications of this study.

Keywords: Nursing, Practical, Costs and cost analysis, Hospital costs, Cost allocation, Indirect cost

Figures and Tables

Fig. 1

Medical cost estimation model in medical department.

jkana-23-139-g001
Table 1

Hospital Management Index

jkana-23-139-i001

*When calculate total number of patients, the number of outpatients was devided by 12 based on Enforcement Rules of Medical Laws 38.

Table 2

Medical Cost in Each Department and Rate of Cost

jkana-23-139-i002

*Labor cost was excluded.

Table 3

The Comparison of Total Medical Cost and Nursing Cost Depending on the Cost Reflecting Administration Cost 2 (Unit: 1,000 won)

jkana-23-139-i003

Administration cost2 is the ratio of cost to the sum of material and administration costs1 for all divisions; *Included in nursing cost.

Table 4

Nursing Cost Index

jkana-23-139-i004

Notes

This work was supported by the Korean Academy of Nursing Administration Research Fund in 2015.

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