The purpose of using cost information within hospitals: Information System and Influence System Perspective

Hiroshi Umeda

Chapter 2 in Management Accounting for Healthcare, 2022, pp 35-50 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The objective of this chapter is to describe the purpose of using cost information for internal use of the organization by interviewing several hospitals, and to compare the differences in performance measures from the perspective of information system and influence system. The results of the survey suggested that all hospitals intended to use cost information as an influence system. The performance measures differed among the hospitals, with measures of profit scale by department, and a rate of change in revenue and some costs by department. The use of performance measures as an influence system differed among the three facilities. In other words, it became clear that each hospital used the indicators and non-financial indicators obtained from departmental costing with the intention of influencing the improvement of profit, the reduction of cost, and the improvement of motivation. When implementing departmental costing, it is necessary to consider not only what measures are used to evaluate performance, but also what impact the measures are intended to have.

Keywords: Management Accounting; Hospital Management; Japanese Management; Cost Management; Profit Management; Cost Information; Healthcare Organization; Empirical Study; Performance Measurement System; Management Control System (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2022
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