Activity Based Cost Accounting Software

Hospital activity-based costing is a method of directing all known expenses to the cost components of the specific services that received benefit from the expense dollars. Unlike other costing methodologies that add the hospital’s average overhead expenses per procedure to each service after the fact, activity-based cost accounting in hospitals considers more service-specific factors beforehand, delivering more accurate results for better reporting and making better decisions. Having the ability to correctly align expenses with the work tasks that are unique to patient care, consuming 100% of the known expenses into costs and devoting greater attention to the individual costs associated with each procedure, makes activity-based costing the best decision support accounting method available for hospital financial management today.

Because the CostFlex proprietary solution is designed to align 100% of the monthly GL expenses with the work and procedures that were performed in the same fiscal month, the result is a fully burdened cost accounting data file at the procedure level where, through the use of patient detailed data collected, the costs will accurately and automatically roll up to the patient level to create dependable patient and service line costs. Through easy-to-navigate client interfaces to the CostFlex databases, patient demographics are used to create custom service lines of patients for user-defined reporting of accurate cost accounting data at the patient/service line level. Understanding and trusting the total cost of each procedure helps healthcare facilities comfortably manage their budgets and generate KPIs for cost reduction and control efforts.