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“No WIES no $”: Monash uses Clinical Costing info to allocate revenue to bring about cultural change

Categories: Costing | Author: Sarah Brandt | Posted: 18/03/2016 | Views: 1072

At Monash Health, hospital sites, programs and patient services were restricting capacity for surgical programs to save money (e.g. closed bed, reduced theatre sessions). A mechanism was needed to incentivise programs to meet or exceed targets.  

To create the necessary incentives, clinical costing data was used to make sure that expenditure budgets were better aligned to activity (WIES) targets. Additionally, activity above target was more accurately funded at marginal rate (% of direct cost), resulting in clearer incentives for Clinical Units to do extra work. 

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