AX1545Using the Guide View

Welcome to Axiom Cost Accounting

Axiom Cost Accounting plays an important role in the financial management of healthcare organizations by providing cost information for activities, supplies, and services at the patient or encounter level. The benefits of cost accounting information and its application in health service organizations are numerous and may include:

  • Identification of high cost activities for improved cost management.
  • Identification of low or negative margin services for improved service line management.
  • Identification of patient care cost variations across services, populations, and providers for improved care management.
  • Evaluation of fixed and variable costs as they relate to products and services for informing decisions about pricing.
  • Identification of key trends in patient, encounter, and activity costs for improved management decisions.

  • Cost information by payer and insurance plans for improved managed care and contract management decisions.

Axiom Cost Accounting contains all the necessary tools to record, track, and report costs incurred by an organization to aid management in decision support. These tools include the ability to:

  • Copy or load cost information from a variety of sources such as General Ledgers, payroll, supply masters, and so on.

  • Load encounter information, including detailed activity or chargeable items.

  • Summarize encounter level activities to calculate volumes by posting and service dates.

  • Adjust and reclass the cost information in a flexible and easy manner, while retaining the ability to reconcile the reclassifications and keep track of the original data.

  • Allocate overhead to direct patient care departments for full-absorption costing and reconcile the allocations.

  • Define cost behavior in terms of fixed, variable, or semi-variable costs at the account, department, and entity level by cost category.

  • Develop activity unit costs using multiple methods within the same department. These methods include Microcosts, Reverse Markup, Relative Value Units (RVUs), Ratio of Cost to Charges (RCCs), and Relative Cost Units (RCUs).

  • Apply unit costs to patient activities and to encounters for reporting by various dimensions, which include entities, patient types, service lines, providers, payers and insurance plans, diagnosis, procedures, DRG, and so on.

See also