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Unformatted text preview: the associated costs becomes more complex. In some acute care hospitals, for example, the cost object is a day of care. Sometimes the day is “all inclusive;” that is, it includes surgical procedures, laboratory tests, radiology exams, pharmaceutical usage, and so on. When this is the case, calculating the cost of a day of care is as simple as the above calculation for Lawncare, Inc. In most hospitals, however, there are several cost objects, each of which is more specific than an all-inclusive day of care. In some instances, for example, it is a day of care for “routine” activities only (e.g., room, dietary, housekeeping, laundry, and nursing costs), with separate cost objects for other activities, such as laboratory tests. Obviously, various other combinations are possible, and even the routine/non-routine distinction is not implemented in a uniform way among similar institutions. For example, nursing supplies may be classified as routine in some hospitals and as non-routine in others. Hospitals also could consider a totally dif...
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This document was uploaded on 03/30/2014.

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