Cost Accounting

Total Control Over Your Unique Costing Needs

Affinity ERP Cost Accounting for healthcare was built from the ground up to simplify, streamline, and thoughtfully automate your organization's cost management requirements. It was designed to integrate with and report on data from clinical and financial systems, allowing healthcare professionals to make sound, cost-effective operating and strategic decisions.

  • Flexible and easy to use
  • Supports multiple costing methods, allowing you to use different cost factors such as self-generated RVUs, national RVUs, engineered standards, or RCCs
  • Multiple relative value units per department
  • Simultaneous linear equations are used for overhead allocations instead of the step-down method. This allows cross-allocating between departments and provides the full costs of all departments, revenue and overhead
  • Includes data integrity utilities that save time by pointing out data inconsistencies and how to fix them
  • Reconciliation reports are available to ensure all expenses are allocated out properly and income statements match facility statements
  • Detailed cost analysis including direct, indirect, fixed, variable, labor, and other components
  • Includes inpatient and outpatient costing, including many demographics
  • Predefined and user defined reporting on all demographics

What Is Cost Accounting?

Cost accounting is the process of determining the full and incremental costs of providing goods and services to patients and customers. To make sound management decisions, all costs must be known at the procedure, patient, and department levels. This includes costs for departments that do not provide direct patient or customer services but are absolutely essential to the operation of your organization.

Costs may be determined based on historical methods of charging for services, such as patient days and procedures. Products or product lines may also be defined for cost analysis, such as DRGs or a specific type of day surgery patient. Knowing the cost of each procedure and major product line is essential to financial stability of every healthcare institution.

Unique Features

  • Complete implementation assistance from beginning to end
  • Flexible standard-setting options, including engineered standards, single or multiple relative value units or RCC
  • Multiple online assumption sets
  • Ability to change standards individually, selectively or globally
  • Extensive modeling capabilities to project changes in inflation, wage rates, new equipment, new services, and more

Flexible Dataset Customization

Not every organization fits neatly into 12-month fiscal years and standard FTE hours. Nevertheless, Affinity ERP Cost Accounting has you covered! You can customize datasets for any fiscal period and make confident, hassle-free costing decisions. You can also:

  • Choose from a variety of default export file types and export files to email addresses
  • Import data from various file types or directly from other Affinity ERP applications

Complete Departmental Costing Control

Whether your organization is large or small, your individual departments must have their needs met efficiently and effectively. Affinity ERP Cost Accounting ensures your users have total control over departmental costing and reporting requirements.

  • Define multi-tiered reporting structures and group departments by those structures
  • Define department types in a variety of ways, including by revenue source, transfers, and special cases
  • Establish department managers; the software will email updates to managers
  • Efficiently manage departmental charge items
  • Automatically calculate departmental allocation tables based on available data or manually define allocation tables as required

Handle Product Groups with Ease

Affinity ERP Cost Accounting includes simple-to-use, in-depth product grouping functionality to ensure sound product costing and accurate revenue reporting.

  • Summarize product groups according to your unique organizational needs; create many groups to organize like products, or one large group with all products, or anything in-between
  • Tie products to charge codes quickly and effectively
  • Track product volumes for accurate costing
  • Develop critical pathways

Helpful Utilities Out-of-the-Box

Working with your organization's costing data requires soundly-designed, flexible utilities: data auditing, import/export, and more. Affinity ERP Cost Accounting comes loaded with powerful and practical utilities to ensure your organizational needs are taken care of.

  • Import assumptions between datasets
  • Import and export costing data with simple mouse clicks
  • Full data analysis finds discrepancies and keeps your data reliable
  • Add, modify, or remove users and passwords effortlessly
  • Create reports for revenue, department, and facility reconciliation
  • Maintain classification code database
  • Build and maintain a costing task list and check off tasks as they're completed

Data Modeling for Proactive "What If" Analysis

Affinity ERP Cost Accounting modeling features allow you to modify large amounts of data quickly and easily to forecast change impact and associated pros and cons.

  • Define and modify assumptions to evaluate the impact of facility changes such as inflation, new service, equipment purchases, pay raises, union contracts, etc.
  • Anticipate and review average revenue realizations
  • Review impacts of charge prices and volume changes
  • Explore changes in payor volumes

Extensive, Detailed Reporting

Detailed reporting is essential to ensure continued smooth day-to-day operation. Like all Affinity ERP software suites, Affinity ERP Cost Accounting contains an impressive selection of built-in reports based on organizational best practices.

  • Summary reports ensure important costing totals are ready for review for upper management
  • Item and product reports are available with multiple sorting and categorizing report variations
  • Departmental reports make managing department costing a breeze
  • User defined reports are available at the patient, doctor, DRG, ICD, and other demographic level
  • All reports can be reviewed on-screen, printed, or exported to a variety of file types (Excel, PDF, HTML, etc.)

Expert Implementation Assistance

Expert consulting assists you through the entire implementation process, including one-on-one training for cost accountants and department managers on best practice cost accounting concepts. Webinars featuring service industry theory and practical experience are also offered.