BPM-ABC in Healthcare: Detecting Inefficiencies in Diagnostic Pathways

This report explores the application of activity-based costing (ABC) in healthcare organizations, focusing on its ability to identify inefficiencies within diagnostic therapeutic pathways (DTPs). It presents a methodological framework, BPM-ABC, applied to a surgery pathway at an Italian University Hospital, highlighting how ABC can provide significant information about resource consumption and activity costs, which is useful for DTP improvement. The study also addresses barriers related to traditional cost center-based accounting systems that can hinder ABC implementation. It emphasizes the role of ABC as a management tool for cost containment and process reengineering, distinguishing between incremental and radical improvements. The research contributes to the literature by raising awareness of the pivotal role accounting systems play in managing organizational processes within healthcare.