How time-driven activity-based costing reports affect healthcare outcomes

As the average life expectancy continues to increase, technology continues to advance, and regulatory requirements continue to grow, the cost of health care is on the rise as well. Consumers are focusing more on the quality of care they receive and how personable their relationship is with their physician or care provider, rather than managed care plans. Developing time-driven activity-based costing (TDABC) reports are not only a good way to measure costs, but improve outcomes as well. TDABC has a public health relevance due to its impact on a large population. Several organizations are adopting it to improve population results. The TDABC movement has gained significant popularity in recent years as users have realized its benefits show excellent outcomes. The TDABC methodology looks at four areas of resources: consumables, space, equipment, and personnel and then identifies opportunities for step changes. It also allows organizations to determine what steps need to be eliminated and areas that can be profitable for the entire care process. Depending on the cost analysis determined from these reports, TDABC can aid in improving outcomes for patients and clinicians as well, which is one of the overall goals in healthcare