Question

What is the difference between direct and indirect costs for a healthcare organization. Provide and discuss at least one example of a direct cost in health care and one example of an indirect cost in health care

Answer 1

1) WHAT IS THE DIFFERENCE BETWEEN DIRECT AND INDIRECT COST FOR A HEALTHCARE ORGANISATION.PROVIDE AND DISCUSS AT LEAST ONE EXAMPLE OF A DIRECT COST IN HEALTH CARE AND ONE EXAMPLE OF INDIRECT COST IN HEALTH CARE?

A) Direct costs are costs that are directly attributed to the patient care examples are nursing services,drugs,medical supplies,diagnostics imaging,rehabilitation and food services.Indirect costs are costs that are not directly related to patient care examples are general administration ,health records, information technology,physical plant and maintenance,human resources,volunteer services,capital expenses and other regional services.

EXAMPLE FOR DIRECT COST; This approach requires the researchers identity and specify all of the resources that are used by individual patients,this type of costing requires detailed knowledge of treatment and the service that are provided to individual patients.All the actual cost of the individuals treatment and service assigned to that one case for example calculating the micro cost for an ICU says requires dollar values for drugs and supplies used in treating the patient identification and evaluating the nursing costs and cost of the physician.

EXAMPLE OF INDIRECT COST: Identify the total expenditure associated with the services using either a micro costing or standard costing approach decide whether the relative greater value of the health records being found later on with the visual being pretty clear and so many things that are rapidly being weighted here will be valued even for the oxygen and the money of the human resources also being used they might charge the capital expenses by attaining more money and value for the indirect cost on the patient.