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

Lia Lawson

January 25th, 2023

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:

Why Time-driven Activity-based Costing may be the "gold standard" to measure costs of surgical pathways?

See the full publication here

Are you ready to take a closer look at your healthcare costs and get more granular with your data? We help you see the details, compare the findings across your doctors, other hospitals, and nationwide benchmarks, and develop the playbooks to turn these insights into actions and results.


AGH/CSS Value Based Healthcare Research Group

January 12th, 2023

Sharing the success of Avant-garde Health and the Codman Shoulder Society Value Based Healthcare Research Group!

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