In the last article we saw how to calculate the cost per patient. Here we are looking at how to calculate the cost of a major disease category – a more detailed service line. Two patients undergoing heart surgery end up with differing costs, based on the staffing for the case, the duration of the […]

The hospital’s goal is to deliver high quality care at low cost; and that’s where Activity Based Costing helps in getting the visibility into the costs.  This article is based on a simplistic approach to show how Activity Based Costing (ABC) can be used to arrive at the cost to serve a patient. The same […]

Large organizations as well as the smallest business entities have their own business models and budgetary plans for generating revenue and profits. Here, we will be looking in more detail at some key aspects of a typical business model for generating revenue. Most organizations sell multiple products rather than a single product. They need to […]

People invest in company shares (or purchase equity) mainly for two purposes: For its Dividend Yield in earning a steady or growing return on investment (as dividends) and/or for its Capital Yield in seeing their investments appreciate in value over time in the Share Market.  Generally, the latter assumes more importance over the former. However, […]

Borrowing is justified for leveraging operations of a business entity. There is a cost attached to borrowing, which needs to be kept at a minimum if a loan is to be meaningful and profitable to an organization. It is prudent to always consider the cost of borrowing as well as the cost of not borrowing […]