Sundaresan, P K; Dr.Rajendra Prasad, P N(Cochin University of Science And Technology, January , 1993)
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Abstract:
It is a fact that there now exists a sound framework of accounting theory
to ascertain the working results and the investment status of hospitals.
Yet, there is no system of accounting in practice to conduct its
activities with utmost efficiency. No attempts have hitherto been made
for the continuous improvement in the servics rendered by hospitals.
Personal investments in hospitals have made the interaction of business
to some extent.Planning, decision making and control assume increasing
importance as hospitals grow in size and complexity. Moreover, wise and
effective utilisation of resources should be ensured. The importance of
cost cannot be overlooked in this context. Cost is the most effective
factor in the determination of the prices of hospital services rendered.
The important managerial functions have to rely heavily on accurate and
timely cost information. More people can be provided with services if no
services cost more than what is a must to provide the necessary level of
care. The price paid for high cost technology for a few is no technology
at all for the many. Hence no pains must be spared in ascertaining,
presenting, controlling and reducing costs. An effective system of Cost
Accountancy and Cost Control is imperative for the survival of hospitals
in the intensely competitive conditions of today. The valuable objective
of "better patient care" can be attained only if the management can make
use of the various tools and techniques to ascertain, control and reduce
each item of cost in hospitals. Constant efforts must be made by the
management to continuously improve their services and bring down costs
and prices of all hospital services. Cost Accountancy has made its
impresssive impact on almost all the spheres of human activities. It is
high time a comprehensive Cost Accountancy and Cost Control system be
implemented in hospitals. The problem under study thus is the designing
of a sound and full-fledged Cost Accountancy and Cost Control system that
suits the requirements of hospitals. It is for the first time in India
during the evolution of Cost Accountancy that a comprehensive cost system
is tried in hospitals.
Description:
school of management studies, Cochin University of Science And Technology