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The cost of a hospital ward in Europe: Is there a methodology available to accurately measure the costs?

D. Negrini (Medical Economics and Research Centre, Sheffield (MERCS), Royal Hallamshire Hospital, ICU, Sheffield, UK)
A. Kettle (Medical Economics and Research Centre, Sheffield (MERCS), Royal Hallamshire Hospital, ICU, Sheffield, UK)
L. Sheppard (Medical Economics and Research Centre, Sheffield (MERCS), Royal Hallamshire Hospital, ICU, Sheffield, UK)
G.H. Mills (Medical Economics and Research Centre, Sheffield (MERCS), Royal Hallamshire Hospital, ICU, Sheffield, UK)
D.L. Edbrooke (Medical Economics and Research Centre, Sheffield (MERCS), Royal Hallamshire Hospital, ICU, Sheffield, UK)

Journal of Health Organization and Management

ISSN: 1477-7266

Article publication date: 1 June 2004

Abstract

Costing health care services has become a major requirement due to an increase in demand for health care and technological advances. Several studies have been published describing the computation of the costs of hospital wards. The objective of this article is to examine the methodologies utilised to try to describe the basic components of a standardised method, which could be applied throughout Europe. Cost measurement however is a complex matter and a lack of clarity exists in the terminology and the cost concepts utilised. The methods discussed in this review make it evident that there is a lack of standardized methodologies for the determination of accurate costs of hospital wards. A standardized costing methodology would facilitate comparisons, encourage economic evaluation within the ward and hence assist in the decision‐making process with regard to the efficient allocation of resources.

Keywords

Citation

Negrini, D., Kettle, A., Sheppard, L., Mills, G.H. and Edbrooke, D.L. (2004), "The cost of a hospital ward in Europe: Is there a methodology available to accurately measure the costs?", Journal of Health Organization and Management, Vol. 18 No. 3, pp. 195-206. https://doi.org/10.1108/14777260410548437

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited