A New Accounting System for Financial Balance Based on Personnel Cost After the Introduction of a DPC/DRG System

  • Authors:

  • Yoshiaki Nakagawa;Tadamasa Takemura;Hiroyuki Yoshihara;Yoshinobu Nakagawa

  • Affiliations:

  • Department of Medical Informatics, Graduate School, Kyoto University, Kyoto, Japan;Department of Medical Informatics, Graduate School, Kyoto University, Kyoto, Japan;Department of Medical Informatics, Graduate School, Kyoto University, Kyoto, Japan;Kagawa National Children's Hospital, National Hospital Organization, Zentsuji City, Japan 765-8501

  • Venue:
  • Journal of Medical Systems
  • Year:
  • 2011

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Abstract

A hospital director must estimate the revenues and expenses not only in a hospital but also in each clinical division to determine the proper management strategy. A new prospective payment system based on the Diagnosis Procedure Combination (DPC/PPS) introduced in 2003 has made the attribution of revenues and expenses for each clinical department very complicated because of the intricate involvement between the overall or blanket component and a fee-for service (FFS). Few reports have so far presented a programmatic method for the calculation of medical costs and financial balance. A simple method has been devised, based on personnel cost, for calculating medical costs and financial balance. Using this method, one individual was able to complete the calculations for a hospital which contains 535 beds and 16 clinics, without using the central hospital computer system.