Designing an activity-based costing model for a non-admitted prisoner healthcare setting

Aim. To design and deliver an activity-based costing model within a non-admitted prisoner healthcare setting. Method. Key phases from the NSW Health clinical redesign methodology were utilised: diagnostic, solution design and implementation. Results. The diagnostic phase utilised a range of strategies to identify issues requiring attention in the development of the costing model. The solution design phase conceptualised distinct ‘building blocks’ of activity and cost based on the speciality of clinicians providing care. These building blocks enabled the classification of activity and comparisons of costs between similar facilities. The implementation phase validated the model. Conclusions. The project generated an activity-based costing model based on actual activity performed, gained acceptability among clinicians and managers, and provided the basis for ongoing efficiency and benchmarking efforts.