4. The benefits of TDABC: some management
implications
The TDABC systemprovided accurate and relevant information
to both healthcare managers and physicians which
assisted them in operational improvements (Section 4.1),
making a profitability analysis per department (Section
4.2), deciding on future investments (Section 4.3).
4.1. Operational improvements
The TDABC approach, with its time equations, offers
some specific advantages, as these equations create more
cost transparency than a conventional cost-accounting
system or a traditional ABC system. As the time equations
clearly show which activities demand more time,
healthcare managers may get an idea of which activities
lead to higher costs. Consequently, a TDABC model offers
operational insights concerning activities and their added
value. This way, the outpatient clinic’s management could
take appropriate actions to lower the time required to
handle some actions, especially in the more demanding
departments like Gastroenterology and Urology. An
internal benchmark exercise (which became possible