Why Time-Driven Activity-Based Costing may be the "Gold Standard" for Measuring Costs of Surgical Pathways?

What is TDABC or Time-Driven Activity-Based Costing?

Time-driven activity-based costing (TBABC) is a costing method that uses the time required to complete each step in a process to produce a product or deliver a service. This method is extremely helpful in healthcare as one calculates costs for the patient’s entire care cycle from the provider’s perspective. TDABC is used to calculate the cost of each resource the patient utilizes in a care process and the amount of time the patient uses that resource.

Ana Etges, one of Avant-garde Health’s research associates, recently published a report in the Journal of Clinical Anesthesia that addresses specifically why TDABC is the gold standard for measuring costs of surgical pathways.

Enclosed is an infographic depicting the benefits of using TDABC to determine the cost of surgical pathways:

See the full publication here

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