Costing Practices in Healthcare

Christopher Chapman, Anja Kern, Aziza Laguecir

Research output: Contribution to journalJournal articleResearchpeer-review


The rising cost of healthcare is a globally pressing concern. This makes detailed attention to the way in which costing is carried out of central importance. This article offers a framework for considering the interdependencies between a dominant element of the contemporary healthcare context, i.e., Diagnosis Related Group (DRG) systems, and costing practices. DRG-based payment systems strongly influence costing practices in multiple ways. In particular, setting DRG tariffs requires highly standardized costing practices linked with specific skill sets from management accountants and brings other jurisdictions (e.g., clinical coding) to bear on costing practice. These factors contribute to the fragmentation of the jurisdiction of management accounting.
Original languageEnglish
JournalAccounting Horizons
Issue number2
Pages (from-to)353-364
Publication statusPublished - 2014

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