A new accounting system for financial balance based on personnel cost after the introduction of a DPC/DRG system

J Med Syst. 2011 Apr;35(2):251-64. doi: 10.1007/s10916-009-9361-y. Epub 2009 Aug 27.


A hospital director must estimate the revenues and expenses not only in a hospital but also in each clinical division to determine the proper management strategy. A new prospective payment system based on the Diagnosis Procedure Combination (DPC/PPS) introduced in 2003 has made the attribution of revenues and expenses for each clinical department very complicated because of the intricate involvement between the overall or blanket component and a fee-for service (FFS). Few reports have so far presented a programmatic method for the calculation of medical costs and financial balance. A simple method has been devised, based on personnel cost, for calculating medical costs and financial balance. Using this method, one individual was able to complete the calculations for a hospital which contains 535 beds and 16 clinics, without using the central hospital computer system.

MeSH terms

  • Accounting / methods*
  • Cost Allocation / methods
  • Diagnosis-Related Groups
  • Economics, Hospital / statistics & numerical data*
  • Financial Management, Hospital / economics
  • Financial Management, Hospital / methods*
  • Hospital Departments / economics*
  • Humans
  • Japan
  • Personnel Administration, Hospital / economics