Cost Management in Hospital Project：The Case of Hospital A

Sijie Huang

（Xiamen National Accounting Institute）

Abstract With the development of marketization of medical market, the public hospitals have increasing demand for cost accounting in precise medical projects. This article applies both conventional costing and activity-based costing methods to Ultrasonic Department, which is a representative of medical detection department.This article analyzes the reasons that lead to the differences and costs components, intending to enhance Ultrasonic Department in terms of services providing processes.There are 3 conclusions in applying the both costing methods in Ultrasonic Departments.First of all, the results generated from conventional methods are generally lower than activity-based costing method, and understates costs.Secondly, given the same project，2 sets of results generated from 2 different methods could indicate contradictive conclusions by comparing each set of results separately with current guide price, which implies activity-based costing plays a more significant role in risk management.Last but not least, It is stated that appliance of activity-based costing in hospitals is more likely to meet the overall medical market's situation.

Key words Medical Projects, Costing Accounting, Cost Management, Activity-Based Costing