An Analysis of Cost and Profit of a Nursing Unit using Performance-Based Costing: Case of a General Surgical Ward in a General Hospital

Ji Young Lim

doi:10.4040/jkan.2008.38.1.161

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Lim: An Analysis of Cost and Profit of a Nursing Unit using Performance-Based Costing: Case of a General Surgical Ward in a General Hospital

Original Article

Journal of Korean Academy of Nursing

Journal of Korean Academy of Nursing 2008; 38(1): 161-171.

Published online: 29 February 2008

DOI: https://doi.org/10.4040/jkan.2008.38.1.161

An Analysis of Cost and Profit of a Nursing Unit using Performance-Based Costing: Case of a General Surgical Ward in a General Hospital

Ji Young Lim

Professor, Department of Nursing, Inha University, Incheon, Korea.

Address reprint requests to: Lim, Ji Young. Department of Nursing, Inha University, 253 Yonghyeon-dong, Nam-gu, Incheon 402-751, Korea. Tel: 82-32-860-8210, Fax: 82-32-874-5880, lim20712@inha.ac.kr

Received 12 October 2007 Accepted 29 December 2007

Abstract

Purpose

The aim of this study was to analysize net income of a surgical nursing ward in a general hospital.

Methods

Data collection and analysis was conducted using a performance-based costing and activity-based costing method.

Results

Direct nursing activities in the surgical ward were 68, indirect nursing activities were 10. The total cost volume of the surgical ward was calculated at ₩119,913,334.5. The cost volume of the allocated medical department was ₩91,588,200.3, and the ward consumed cost was ₩28,325,134.2. The revenue of the surgical nursing ward was ₩33,269,925.0. The expense of a surgical nursing ward was ₩28,325,134.2. Therefore, the net income of a surgical nursing ward was ₩4,944,790.8.

Conclusion

We suggest that to develop a more refined nursing cost calculation model, a standard nursing cost calculation system needs to be developed.

Keywords: Nursing services, Cost

Figures and Tables

Table 1

Workload, Relative Values, Activity-Cost, and Classification of Order-Induced/Non Order-Induced of Direct Nursing Activities

^*relative value score X activity frequency per month; ^†relative value score X salary per one relative value score (₩127.75); ^‡sum of relative value score X salary per one relative value score; ^§O: Order-induced activity; X: Non order-induced activity.

Table 2

Workload, Relative Values, Activity-Cost, and Classification of Order-Induced/Non Order-Induced of Indirect Nursing Activities

Table 3

Distribution of Nursing Activity Cost (Unit:₩)

Table 4

Profits of Nursing Ward (Unit:₩)

Notes

This work was supported by the Korea Research Foundation Grant funded by the Korean Goverment (MOEHRD) KRF-2006-003-E00405

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