Profitable capitation requires accurate costing.

D. A. West, L. L. Hicks, E. A. Balas, T. D. West

Research output: Contribution to journalArticlepeer-review

4 Scopus citations


In the name of costing accuracy, nurses are asked to track inventory use on per treatment basis when more significant costs, such as general overhead and nursing salaries, are usually allocated to patients or treatments on an average cost basis. Accurate treatment costing and financial viability require analysis of all resources actually consumed in treatment delivery, including nursing services and inventory. More precise costing information enables more profitable decisions as is demonstrated by comparing the ratio-of-cost-to-treatment method (aggregate costing) with alternative activity-based costing methods (ABC). Nurses must participate in this costing process to assure that capitation bids are based upon accurate costs rather than simple averages.

Original languageEnglish (US)
Pages (from-to)162-170, 150
JournalNursing economic$
Issue number3
StatePublished - 1996
Externally publishedYes

ASJC Scopus subject areas

  • Leadership and Management


Dive into the research topics of 'Profitable capitation requires accurate costing.'. Together they form a unique fingerprint.

Cite this