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  • March 2012 (Revised December 2014)
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Schön Klinik: Measuring Cost and Value

By: Robert S. Kaplan, Mary L. Witkowski and Jessica A. Hohman
  • Format:Print
  • | Language:English
  • | Pages:22
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Abstract

The case illustrates how a leading German hospital group has invested deeply in the measurement of patient-level outcomes and costs, the foundations of a health care value framework. The company launches a pilot project to use time-driven activity-based costing (TDABC) for measuring the cost of total knee replacements. The costing project complements an existing initiative for comprehensive outcomes measurement. The combination of accurate measurement of outcomes and costs empowers local personnel — physicians, nurses, and administrators — to improve the value of care they deliver. It also permits benchmarking across the group's multiple hospital sites to identify best practices that can be shared. The case concludes with a decision on using outcome and cost measurement to inform the adoption of a new recuperative approach that promises to dramatically lower post-surgical length-of-stays.

Keywords

Health Care; Costing; Activity-Based Costing; Hospitals; Activity Based Costing and Management; Value; Health Care and Treatment; Outcome or Result; Health Industry; Germany

Citation

Kaplan, Robert S., Mary L. Witkowski, and Jessica A. Hohman. "Schön Klinik: Measuring Cost and Value." Harvard Business School Case 112-085, March 2012. (Revised December 2014.)
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About The Author

Robert S. Kaplan

Accounting and Management
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Related Work

    • March 2012 (Revised December 2014)
    • Faculty Research

    Schön Klinik: Measuring Cost and Value

    By: Robert S. Kaplan, Mary L. Witkowski and Jessica A. Hohman
    • June 2015
    • Faculty Research

    Schӧn Klinik: Measuring Cost and Value

    By: Robert S. Kaplan
Related Work
  • Schön Klinik: Measuring Cost and Value By: Robert S. Kaplan, Mary L. Witkowski and Jessica A. Hohman
  • Schӧn Klinik: Measuring Cost and Value By: Robert S. Kaplan
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