Cost and Hospital Health Services

Abstract

Health production is a process, in which goods, human labor and other costs are involved in and incorporated into the creation of services, directly or indirectly. The total production cost reflects all costs associated with the object, including both direct costs and an appropriately apportioned share of indirect costs. The need to control health care costs (cost-containment) has given rise to common policies attempting to combine cost-effectiveness (efficiency) with managerial efficiency. The choice of the method for cost determination in nursing facilities should take into account the specificities of the healthcare facility, the quality of information available and the intended purpose