Applying ABC system for calculating cost price of hospital services case study: Beheshti hospital of Hamadan

Abstract Introduction activity based costing (ABC) is an accounting method that allows organizations such as hospitals to determine costs based on the resources they consume. This method is a new and more effective cost system. In this study, ABC method was used for calculating cost price of radiology services in Beheshti hospital of Hamadan. Method This cross-sectional study was performed in 2015. The statistical population was the diagnostic imaging department of Beheshti hospital in Hamadan University of medical sciences. The required data was collected through information forms, and the price was calculated by using Activity-Based Costing model. To apply ABC method, the hospital was divided into several cost centers and five cost categories were defined: wage, equipment, space, material, and overhead costs. Then activity centers were defined. Results the highest costs were for human resources (65.2%) and the lowest ones for energy conduits costs (0.4%). According to the obtained results the total cost of the support sector in Beheshti Hospital during the study period was 64,091,093,852 IRR. Conclusion By utilizing ABC, hospital managers have a valuable accounting system that provides a true insight into the organizational costs of their department. The results of this study indicated that there are differences between the real price of radiology services and approved tariffs. Suggest until tariff amending, hospital commence to modify financial and personnel structures and repair its costs.