I5

Case 3: Asante Teaching Hospital - Activity Based Costing Asante's not-for-profit status notwithstanding, it operated like a competitive enterprise whose revenue figure was comprised of full cost recovery from patients and their insurers. As a not-for-profit organization, Asante's challenge was to extract maximum benefits for each dollar of annual funding from the foundation. Examples of these benefits included more doctors learning at a higher level, and advances in eye surgery that created greater benefit for those suffering from cataracts. Quantifying and costing these metrics objectively (even soft ones such as "better") was an important part of the challenge for the organization. Asante's CEO was a chartered professional accountant, and was recruited in 2013 from a for-profit hospital in California, where he had earned a reputation for disciplined cost control. This skill set appealed to the board because it had the potential to broaden the number of positive patient outcomes through astute cost management. Required You are required as a group to analyse the above case Asante Teaching Hospital - Activity Based Costing making reference to the content of Unit 8 - Cost Allocation and Activity Based Costing Systems as the main background reading. When you have completed the analysis of the case, remember that how your materials is presented is also as important as content itself.