Management of Costs in Healthcare

Garant předmětu:

Petra Hospodková

Lecturer:

Martina Caithamlová

Tutor:

Martina Caithamlová

Supervisor:

Department of Biomedical Technology

Synopsis:

Requirements:

In order to obtain classified credit, it is necessary to obtain at least 50 points out of 100 possible points.

1) Intermediate control test, which focuses on practical solution of examples from the problem of costs and calculations. The test is worth a maximum of 25 points.

2) Max 25 points - for sub-activities in seminars.

3) A final test focusing on both the theoretical aspects of the course and solving examples. A maximum of 50 points can be obtained from this test - a minimum of 50% pass rate is required.

Assessment according to the ECTS scale.

Attendance at seminars is compulsory - max. 2 absences are allowed.

Syllabus of lectures:

- Cost management as part of business management. Basic characteristics of the healthcare industry and its functions.

- Costs - concept, cost breakdown, cost reduction options, situation in the healthcare sector. Costs from the perspective of managerial decision-making.

- Cost management in health care institutions - cost allocation in health care institutions, principles of allocation, cost management systems in private health care institutions and in public health care institutions. Cost analysis.

- Costing - objective of costing, costing system, traditional and modern approaches in costing, activity based costing, costing in the health care system.

- Budgeting - budgeting, function and content of the budget, phases of the budgeting process, long-term and short-term budgets, transformation of costs in the budgeting and accounting structure (generic costs) and in the costing structure (direct and indirect costs), enterprise budgeting system. Alternative methods of budgeting.

- Cost management along the line of responsibility - cost centres, revenue centres, profit centres, profit centres. Relationship between different types of centres. Application of financial criteria in the internal structure of the organisation.

- Enterprise accounting. Profit and loss account. Relationship between revenues and costs. Specific problems of profit assessment in the health sector (private FO entities, private PO entities, contributory organisations).

- Material costs - optimization approaches in inventory management, inventory standardization, inventory management indicators. Operational inventory management. Costs associated with supply.

- Depreciation - depreciation of fixed assets, accounting and tax depreciation.

- Personnel costs - wages, salary. Employee entitlements under employment or non-employment agreements. Health and social insurance.

- Prices - types of prices, factors affecting prices, pricing policy, pricing strategies, pricing methods. Issues of pricing in health care.

- Performance management in healthcare organisations. Use of performance indicators.

- Tax system in the Czech Republic. Direct taxes. Personal income tax, corporate income tax. Public benefit taxpayer.

- Indirect taxes. Value added tax. Specifics of VAT in the health sector.

Syllabus of tutorials:

- Costs and their breakdown. Example of cost decomposition.

- Calculation - direct, mark-up - examples from practice.

- Costing of medical performance - a case study.

- Activity Based Costing - a case study.

- Types of cost breakdown. Revenue, cost, profit and loss. Profit and loss statement. Analysis of practice statements. Break-even point analysis.

- Interim control test.

- Material costs. Inventory norming. Optimization problems.

- Depreciation methods for tangible fixed assets. Application of depreciation in the case of investment grants.

- Remuneration of employees in the healthcare sector. Personnel costs. Health and social insurance.

- Pricing issues in the health sector. Case study - methodologies for pricing and reimbursement of medicines.

- Direct taxes - calculation of income tax for FO/PO.

- Indirect taxes - VAT in the health sector. Shortening coefficient.

Study Objective:

The aim of the course is to equip students with knowledge of current issues and problems of cost management in healthcare facilities. The course introduces students to basic economic concepts, which are followed by the issue of costs, their breakdown and methods of assigning costs to individual performances. Costs are discussed in detail both from the perspective of business practice and from the perspective of economic theories. The basic options for reducing costs are discussed. Relatively separate topics are the basic tools of value management - the system of costing and budgets. The aim is also to introduce students to cost management along the line of responsibility. Attention is also paid to the most important types of costs in healthcare facilities.

Study materials:

BRAGG, Steven, M.: Cost Management Guidebook: Fourth Edition. Lightning Source INC., 2020. ISBN 1642210528

MARC WOUTERS. Cost management: strategies for business decisions. International ed. New York: McGraw-Hill Professional, 2012. ISBN 9780077132392.

NOWICKI, Michael: Introduction to the Financial Management of Healthcare Organizations, Seventh Edition. Health Administration Press, 2017. ISBN 978-1-5679-3907-1.

Note:

Time-table for winter semester 2024/2025:

Time-table is not available yet

Time-table for summer semester 2024/2025:

Time-table is not available yet

The course is a part of the following study plans:

• Systematic Integration of Prosesses of Healthcare (compulsory course)