Cost analysis of Medical diagnostic Services of Hormone section of the central laboratory in Iran's East Azerbaijan Province using activity-based costing method in 2013

Abstract

Background and objectives: The most basic financial data required for a laboratory manager consist of costs allocated to the cost units. The analysis of cost can promote the management performance in budgeting, strategic planning, privatization, accrual accounting and in overall performance of an organization. This study analysis and estimated the unit cost of laboratory services of hormone sector of East Azerbaijan central laboratory using activity-based costing in 2013. Material and methods: This study is conducted as cross-sectional and retrospective. For this purpose resources and activities of the hormone sector were selected as received high tariffs against the other sectors. The data gathered using forms, financial and laboratory software, interviews and direct observation which eventually an analysis were performed using the software Excel 2010 and the finally unit cost were calculated. Results: The results from East Azerbaijan central laboratory (EACL) shows that the highest and lowest references are Labor costs 59%, Depreciation expense 1.25% of total costs related to Hormone sector respectively. The highest cost was due to Growth hormone (GH) testing and the lowest cost was due to Thyroid (TSH) testing. And finally calculated average cost differs 11% from the tariffs approved by the Iranian Ministry of Health (MOH). Conclusion: According to the high volume of testing operations and consequently the deployment of skilled human resource and specialized equipment, central laboratory will be faced with a budget deficit if the tariff is not amended.