Activity-based costing via an information system: An application created for a breast imaging center

Activity-based costing (ABC) is a process that enables the estimation of th e cost of producing a product or service. More accurate than traditional ch arge-based approaches, it emphasizes analysis of processes, and more specif ic identification of both direct and indirect costs. This accuracy is essen tial in today's healthcare environment, in which managed care organizations necessitate responsible and accountable costing. However, to be successful ly utilized, it requires time, effort, expertise, and support. Data collect ion can be tedious and expensive. By integrating ABC with information manag ement (IM) and systems (IS), organizations can take advantage of the proces s orientation of both, extend and improve ABC, and decrease resource utiliz ation for ABC projects. In our case study, we have examined the process of a multidisciplinary breast center. We have mapped the constituent activitie s and established cost drivers. This information has been structured and in cluded in our information system database for subsequent analysis. Copyrigh t (C) 2001 by W.B. Saunders Company.