Using the Time-Driven Activity-Based Costing Model in the Eye Clinic at The Hospital for Sick Children: A Case Study and Lessons Learned

Sanchita Gulati; David During; Jeff Mainland; Agnes M F Wong

doi:10.12927/hcq.2018.25423

Using the Time-Driven Activity-Based Costing Model in the Eye Clinic at The Hospital for Sick Children: A Case Study and Lessons Learned

Healthc Q. 2018 Jan;20(4):48-53. doi: 10.12927/hcq.2018.25423.

Authors

Sanchita Gulati¹, David During², Jeff Mainland³, Agnes M F Wong⁴

Affiliations

¹ Currently working as a consultant with Deloitte Consulting and has a wide range of experience in both the US and Canadian healthcare markets working on hospital information system implementation and planning, process improvement, technology strategy, improving resource utilization and case costing.
² Director of Process Improvement and Innovation at The Hospital for Sick Children.
³ Executive vice-president at The Hospital for Sick Children.
⁴ Former ophthalmologist-in-chief (2013-2017) and John & Melinda Thompson chair in Vision Neurosciences at The Hospital for Sick Children, as well as professor of Ophthalmology and Vision Sciences at University of Toronto.

PMID: 29595428
DOI: 10.12927/hcq.2018.25423

Abstract

One of the key challenges to healthcare organizations is the development of relevant and accurate cost information. In this paper, we used time-driven activity-based costing (TDABC) method to calculate the costs of treating individual patients with specific medical conditions over their full cycle of care. We discussed how TDABC provides a critical, systematic and data-driven approach to estimate costs accurately and dynamically, as well as its potential to enable structural and rational cost reduction to bring about a sustainable healthcare system.

MeSH terms

Child
Costs and Cost Analysis
Health Care Costs*
Hospitals, Pediatric
Humans
Ontario
Ophthalmology / economics*
Ophthalmology / organization & administration
Organizational Case Studies
Outpatient Clinics, Hospital / economics*
Outpatient Clinics, Hospital / organization & administration
Process Assessment, Health Care / methods*
Time Factors