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Reference no. 115-068-1
Alicia Nunez (Universidad de Chile); Liliana Neriz (Universidad de Chile); Veronica Fuentes (Universidad de Chile)
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9 pages
Data source:
Generalised experience


Case La Providencia describes the current operation of a clinic specialised in Magnetic Resonance Imaging (MRI) procedures. Currently, the clinic offers two types of MRI: head and lumbar spine. One of the most important processes for a medical center, in order to be sustainable, is determining patient fees considering public and private insurance agreements. A well defined cost system should be implemented to ensure effective negotiations regarding agreements with insurance providers. The main focus of this case study is on improving the cost system to negotiate examination prices with health insurance providers. Through the development of this case, students will be able to understand the overall processes of a medical centre focused on MRI, the importance of an appropriate cost system that fits the needs of an organisation, how to utilise activity based costing, and how these tools provide better information for the decision-making process.


Activity-based costing; Activity-based budgeting; Activity based management; Hospitals; Magnetic resonance imaging; Chile; Hospital management; Costs; Health; Medical services

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