How much does a really good activity based cost accounting system like CostFlex cost to acquire and use?
While it is never going to be free, the good news is that the acquisition and on-going cost of the CostFlex ABC system has been dramatically reduced over the past 25 years.
Our competitors would love to see us publish our list prices here. While that is not going to happen, there are important reasons for the dramatic cost reductions including:
- The CostFlex programs used by an 800 bed university hospital are the same programs used in the installation of a 25 bed critical access hospital or a small clinic or physician office. And some of these programs have been in active use for over 25 years.
- Installation cost of the CostFlex ABC system is about the same for any sized single facility client. Typically, two Project Managers complete the turnkey installation in eight weeks or less. Installation of multi-facility hospital systems will require proportionally more staff resources, of course.
- Client ongoing operational staffing is negligible. A few hours a month of an existing staff member (secretary) for a small healthcare business or hospital with just a few downloads to a quarter FTE for a large university hospital is all that is required.
- Interfacing to the clients main computers for downloads (and uploads) is also negligible. For the downloads, existing reports from a General Ledger system, a Payroll system, or the hospitals’ HIS just printed to disk as text files is all that is required. Uploads use CostFlex generated Excel files to pass cost data to other client owned applications.
- Because of the mature nature of the software, support is based on the number of active users, which is usually only one staff person. Large facilities may have multiple analysts who will generate more support calls.
But, back to your original question, how much does the CostFlex ABC system cost? All we can say here is that we are typically the lowest priced vendor in any competitive situation, sometime as much as costing only 1/3 the next highest vendor.