Clinical Costing Standards

1. ASSIGNMENT OF DIRECT AND INDIRECT DEPARTMENTAL COSTS
   All general ledger cost centres need to be classified as direct or indirect. This standard gives definitions of direct and indirect costs. It then assigns all hospital cost centres as either direct or indirect departments. ..more –»
2. ALLOCATION OF SERVICE STRUCTURE FOR COMPARATIVE PURPOSES
   This Standard provides component comparative costs at a sevice level for benchmarking purposes, it allows auditing and improves the accuracy of cost allocation and information systems. ..more –»
3. ALLOCATION OF COSTS IN EVENT OF WARD/UNIT/SEVICE CLOSURE OR TRANSFER
   This Standard provides a methodology of treating costs for both temporary and permanent ward closures and transfers. It ensures that costs reflect the true patient activity ..more –»
4. ASSIGNMENT OF EXPENSE ACCOUNTS TO VARIABLE AND FIXED COST TYPES
   This Standard allows the allocation of general ledger expense accounts into fixed or variable cost types. All general ledger expense accounts need to be classified as variable or fixed types. Total variable costs increase as volume increases. ..more –»
5. INDIRECT DEPARTMENT ALLOCATION METHODOLOGY
   This Standard identifies the most appropriate mechanism for the allocation of costs contained within Indirect Departments. It enables indirect costs to be allocated to patients via Direct Departments and defines the recommened allocation methodology for each Indirect Department. ..more –»
6. WHERE THE GENERAL LEDGER HAS BEEN POSTED INTO CLOSED OR INACTIVE COST CENTERS
   This Standard identifies the most appropriate mechanism to capture general ledger costs posted to closed or inactive cost centers. It ensures that all operating costs are contained within the clinical costing system. ..more –»
7. EXCLUSION OF COSTS FOR THE PURPOSE OF CLINICAL COSTING
   This Standard identifies circumstances when there is a need to exclude costs from the clinical costing system. It ensures that all cost allocations accurately reflect patient activity and non operating costs are excluded. ..more –»
8. INTERMEDIATE PRODUCTS AND FEEDER SYSTEMS
   This Standard identifies the ideal intermediate product methodology which will facilitate accurate costing. This Standard provides a spreadsheet to facilitate the documenting and measuring of materiality and quality of intermediate products. ..more –»
9. PUBLIC/PRIVATE ALLOCATIONS FOR CLINICAL COSTING
   Public Hospitals treat a combination of both public and private patients, the relative number varying with each institution. In each organisation the treatment of the costs associated with private patients are different dependent upon the structure and needs of the institution. ..more –»
10. ASSIGNMENT OF RELATIVE VALUE UNITS
    This Standard establishes a methodology for the development of appropriate Relative Value Units (RVU's) and update frequency ..more –»
11. AUDITING
    The aim of this standard is to ensure the integrity of clinical costing data for the purpose of both internal and external analysis. ..more –»
12. ASSIGNMENT OF FIXED AND VARIABLE COSTS TO LABOUR CLASSIFICATION
    This Standard relates to the allocation of labour categories into variable, fixed or both, for the purpose of resource management. This assists in marginal cost analysis and productivity trends. ..more –»
13. ALLOCATION OF DIRECT COSTS
    To identify the most appropriate mechanism for the allocation of costs contained within Direct Departments. To enable direct costs to be allocated to patients. ..more –»
14. BENCHMARKING
    To provide a methodology and a process for hospitals to undertake benchmarking. Section E provides a specific example of the use of this standard in Victoria. ..more –»