Accounting at MacCloud Winery

David F. Hawkins; Robert S. Kaplan; Gregory S. Miller

Case | HBS Case Collection | June 2005 (Revised September 2005)

Accounting at MacCloud Winery

by David F. Hawkins, Robert S. Kaplan and Gregory S. Miller

Abstract

Uses a fictional new winery to introduce accounting concepts and practices such as assets, liabilities, expenses, the matching principle, and contingent activities. Designed to approach the subject at a conceptual level, allowing class discussion to focus on the underlying thought process regarding accounting, rather than on "proper" numerical calculations.

Keywords: Financial Reporting; Theory; Accounting;

Format: Print

2 pages

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Citation:

Hawkins, David F., Robert S. Kaplan, and Gregory S. Miller. "Accounting at MacCloud Winery." Harvard Business School Case 105-081, June 2005. (Revised September 2005.)

Objectives: To apply time-driven activity-based costing (TDABC) methodology to determine emergency medicine physician documentation costs with and without scribes.

Methods: Two research assistants shadowed attending physicians for a total of 64 hours in the adult emergency department. A tablet-based time recorded was used to obtain estimates for physician documentation time on both control (no scribe) and intervention (scribe) shifts.

Results: Control shifts yielded approximately 3 hours of documentation time per 8 hours of clinical time. When paired with a scribe, attending physician documentation decreased to 1 hour and 45 minutes during a shift and 15 minutes of post-shift documentation. The physician cost estimate for documentation without and with a scribe is 644 and 488 dollars, respectively.

Conclusions: TDABC methodology demonstrated that scribes afford a cost-effective solution to ED clinical documentation. The costing approach enables clinicians to understand utilization and cost of medical resource at a more granular level.

This note discusses the centuries-long history and current situation of Mexican farmworkers north of the border—documented or undocumented, resident or temporary, and increasingly indigenous. The story provides the background for discussion of dilemmas facing policymakers, agricultural enterprises, and the workers themselves.

Article | Journal of Medical Economics | Forthcoming

Time-Driven Activity-Based Cost Analysis for Outpatient Anticoagulation Therapy: Direct Costs in a Primary Care Setting with Optimal Performance

Robert S. Kaplan, Rohit A. Bobade, Richard A. Helmers, Thomas M. Jaeger, Laura J. Odell and Derek A. Haas

Objectives: To determine how overall cost of anticoagulation therapy for warfarin compares with that of Novel Oral Anticoagulants (NOACs). Also, to demonstrate a scientific, comprehensive, and an analytical approach to estimate direct costs involved in monitoring and management of anticoagulation therapy for outpatients in an academic primary care clinic setting, post-initiation of therapy.

Methods: Time-Driven Activity-Based Costing (TDABC) was applied in a population-based cross-sectional study at Mayo Clinic’s warfarin anticoagulation clinic. The study measured the personnel and supplies costs to monitor and manage anticoagulation therapy for 5,526 patients.

Results: The cost of warfarin management for patients who display unstable International Normalized Ratio (INR) is more than three times those who display stable INR over time. For complex anticoagulation patients, the total cost of medication and monitoring for warfarin anticoagulation therapy is similar to that for NOACs.

Conclusion: Despite warfarin being significantly less expensive to purchase than NOACs, overall warfarin management incurs higher costs due to laboratory monitoring and provider time than NOACs. NOAC treatment, therefore, may not be more expensive than warfarin therapy management for complex anticoagulation patients.

Keywords: Time-Driven Activity-Based Costing; Activity Based Costing and Management; Health Care and Treatment; Analysis;

Citation:

Kaplan, Robert S., Rohit A. Bobade, Richard A. Helmers, Thomas M. Jaeger, Laura J. Odell, and Derek A. Haas. "Time-Driven Activity-Based Cost Analysis for Outpatient Anticoagulation Therapy: Direct Costs in a Primary Care Setting with Optimal Performance." Journal of Medical Economics (forthcoming). (Pre-published online March 4, 2019.) View Details

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