Cost accounting in hospitals and profitability

Nowadays, the places that offer health care service are hospitals. Like in the other business fields, cost analysis is very important in hospitals. By means of cost analysis, profit and loss statement of the hospitals can be calculated best. Thus, the strategic decisions such as determining the number of the patients with the hospital administration and increasing the investment on certain areas of expertise can be taken.The health care services provided in the hospitals are diverse and not homogeneous. Each patient is provided with different treatment. This situation makes it difficult to calculate patient-based cost accounts. However, by means of job order costing system which is a way of calculating the cost accounts, patient cost card is made for each patient, and patient-based cost accounts can be calculated. In this way, as a result of health care service provided to the patient, it is understood whether the hospital has made a profit or a loss.In this study, cost calculation systems are explained in a detailed way, and a model implementation is shown on job order costing system. Cost cards of patients are made by calculating the health care costs of a patient examined in polyclinic and a patient examined in clinic by using job order costing system. Finally, by comparing the cost of the patients and the profits gained by the patients, the assessment of profit and loss is made. Keywords: Cost Analysis, Profit-Loss Analysis, Cost Calculation Systems, Job Order Costing System