1. Using activity-based costing and theory of constraints to guide continuous improvement in managed care.
- Author
-
Roybal H, Baxendale SJ, and Gupta M
- Subjects
- Humans, Kentucky, Managed Care Programs organization & administration, Managed Care Programs standards, Mental Health Services organization & administration, Mental Health Services standards, Office Visits statistics & numerical data, Organizational Innovation, Planning Techniques, Process Assessment, Health Care, Program Evaluation, Substance-Related Disorders therapy, United States, Cost Allocation, Managed Care Programs economics, Mental Health Services economics, Office Visits economics, Total Quality Management methods
- Abstract
Activity-based costing and the theory of constraints have been applied successfully in many manufacturing organizations. Recently, those concepts have been applied in service organizations. This article describes the application of activity-based costing and the theory of constraints in a managed care mental health and substance abuse organization. One of the unique aspects of this particular application was the integration of activity-based costing and the theory of constraints to guide process improvement efforts. This article describes the activity-based costing model and the application of the theory of constraint's focusing steps with an emphasis on unused capacities of activities in the organization.
- Published
- 1999