Refer to the Action feature, “Palliative Care Unit,” on page 5.

What type of costs in a hospital might be difficult to split between the PCU and non-PCU areas? What type of costs would be easy to split?

Data from in Page 5

Transcribed Image Text:

Palliative Care Unit Cost containment in health care is an important public policy issue requiring good cost accounting information for decisions. One issue facing health care practitioners is the treatment of terminally ill patients. One treatment approach is palliative care, which seeks to comfort, not cure, the patient and involves a variety of nontraditional resources (art, pets, etc.). Although such a treatment approach is viewed as humane, there are concerns about its costs. However, cost In Action accounting information showed that the cost per patient in a palliative care unit (PCU) was $5,313, compared with a cost per patient of $12,319 in a non-PCU. This cost information adds value for decision makers in health care by helping them weigh alternative treatment approaches while still managing their costs. Source: The Wall Street Journal, March 10, 2004: A1.