Essays on Analysis of Costing In National Health Service Case Study

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The paper "Analysis of Costing In National Health Service" is a great example of a finance and accounting case study. Medical entities such as the National Health Service have continued to face a significant level of challenge that is attributed to customising its services to fit that of a patient-centred organisation but still manage to cut down on unnecessary costs and save resources. Indeed, the process of managing care more efficiently would require that the NHS adopt modern systems for purposes of evaluating possible financial challenge. As such, this report indicates that the health facilities should now transform from using of references costing technique to the immediate adoption of Patient-Level Information and Costing Systems (PLICS) as well as Service Line Reporting (SLR) (Chapman & Kern, 2010).

The focus of this paper is to examine the proposed findings of the report; define the concept of ABC and thereafter; provide recommendations related to critical appraisal on the implementation of the findings at UHW that do not currently enjoy ABC costing technique. 2.0 Discussion & Analysis The report proposes a great number of aspects that are discussed as follows; first, it is ascertained that the overall NHS operations should seek to adopt fundamental principles of ABC for trusts that are currently exploring the need to invest in robust PLICS and SLR in order to enjoy a greater level of benefits from these systems (Chapman & Kern, 2010).

It is noted that effective implementation of PLICS and SLR would need a basic shift in the analysis of costs behaviours to ABC. This means that, under the new costing framework, the overheads will now not be perceived as being unmanageable elements but rather; they will be broken down and analysed through activity platforms.

Secondly, the report proposes that in order to gain a significant level of awareness of the underlying principles of ABC then there should be immediate integration of the entire costing system into the organisation culture of NHS as a whole (Chapman & Kern, 2010). The report notes that for a long period of time, such hospital costing aspects as HRG; PbR and management budgets formed a part of a decade long culture for purposes of eliciting central level of control.

However, with the new proposition of ABC basic principles, the culture of allocating overheads and indirect costs into clinical units or activities is about change completely.  



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