Implementing time-driven activity-based costing (TDABC) in out-patient nursing department: A case from UAE

Abstract

The UAE diversification strategy of the economy focuses on reducing the dependence of country GDP on oil. As a result, the healthcare sector has significantly transformed from total dependence on government health facilities and support to the involvement of the private sector as an essential partner in covering the health needs of the UAE population. In this emerging competitive market, the leaders of both public and private healthcare sectors work on several strategies to improve the effectiveness and the competitiveness of their organizations. Literature shows that nearly 50% of the hospital's expenses are directed to cover employees' salaries. On the other hands, skilled em-ployees' salaries are increasing day by day. Thus, we believe that hospitals should deal smartly with this debate by ensuring using maximum manpower resources. In this study, we present a nursing project that adopted Fredrick Taylor concepts and used the Time-Driven Activity-Based Costing (TDABC) methodology to calculate costs and compare its outcome to the currently implemented Full-Time Equivalent (FTE) system in the outpatient unit at Tawam Hospital. The study findings have confirmed that TDABC can be implemented successfully and make a difference in human resources management of nurses at the unit level. The authors have recommended rolling out the study to inpatient nursing units.