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Thumbnail image for product with reference number 9-112-085
Schon Klinik: Measuring Cost and Value
Case
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Reference no. 9-112-085
Subject category: Finance, Accounting and Control
Authors: Robert S Kaplan (Harvard Business School); Mary L Witkowski (Harvard Business School); Jessica A Hohman (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 2012
Version: 15 December 2014
Revision date: 23-Apr-2015
Length: 21 pages
Data source: Field research
Topics: Health care; Activity-based costing; Management; Values; Health
Share a link: https://casecent.re/p/116652
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Abstract

The case illustrates how a leading German hospital group has invested deeply in the measurement of patient-level outcomes and costs, the foundations of a health care value framework. The company launches a pilot project to use time-driven activity-based costing (TDABC) for measuring the cost of total knee replacements. The costing project complements an existing initiative for comprehensive outcomes measurement. The combination of accurate measurement of outcomes and costs empowers local personnel - physicians, nurses, and administrators - to improve the value of care they deliver. It also permits benchmarking across the group's multiple hospital sites to identify best practices that can be shared. The case concludes with a decision on using outcome and cost measurement to inform the adoption of a new recuperative approach that promises to dramatically lower post-surgical length-of-stays.
Location:
Germany
Size:
EUR500 million
Other setting(s):
2011
Thumbnail image for product with reference number 5-115-066
Schon Klinik: Measuring Cost and Value
Teaching note
-
Reference no. 5-115-066
Subject category: Finance, Accounting and Control
Authors: Robert S Kaplan (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 2015
Version: 25 June 2015
Length: 13 pages
Data source: Field research
View full details

About

Abstract

The case illustrates how a leading German hospital group has invested deeply in the measurement of patient-level outcomes and costs, the foundations of a health care value framework. The company launches a pilot project to use time-driven activity-based costing (TDABC) for measuring the cost of total knee replacements. The costing project complements an existing initiative for comprehensive outcomes measurement. The combination of accurate measurement of outcomes and costs empowers local personnel - physicians, nurses, and administrators - to improve the value of care they deliver. It also permits benchmarking across the group's multiple hospital sites to identify best practices that can be shared. The case concludes with a decision on using outcome and cost measurement to inform the adoption of a new recuperative approach that promises to dramatically lower post-surgical length-of-stays.

Settings

Location:
Germany
Size:
EUR500 million
Other setting(s):
2011

Related

Thumbnail image for product with reference number 5-115-066
Schon Klinik: Measuring Cost and Value
Teaching note
-
Reference no. 5-115-066
Subject category: Finance, Accounting and Control
Authors: Robert S Kaplan (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 2015
Version: 25 June 2015
Length: 13 pages
Data source: Field research
View full details