Journal of Scientific Papers


© CSR, 2008-2015
ISSN 2071-789X

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Strike Plagiarism

  • General Founder and Publisher:

    Centre of Sociological Research

  • Publishing Partners:

    University of Szczecin (Poland)

    Mykolas Romeris University (Lithuania)


    Alexander Dubcek University of Trencín, Faculty of Social and Economic Relations (Slovak Republic)

    University of Entrepreneurship and Law, (Czech Republic)


  • Membership:

    American Sociological Association

    European Sociological Association

    World Economics Association (WEA)




Measuring diagnosis and patient profitability in healthcare: economics vs ethics

Vol. 8, No 1, 2015

Boris Popesko,

Tomas Bata University in Zlin Czech Republic



Petr Novák,

Tomas Bata University in Zlin Czech Republic


Šárka Papadaki,


Tomas Bata University in Zlin,

Czech Republic



ABSTRACT. This paper focuses on issues relating to gauging profitability under circumstances in Czech healthcare orga- nizations. At present, the trend in healthcare management is for more frequent utilization of advanced economic and cost accounting tools. These qualitatively improve the de- cision-making process in healthcare establishments, as well as aiding provision of accurate data on the cost and revenue of the outputs of hospital organizations, such as the various diagnoses and types of patients. Herein the authors pres- ent analysis of the profitability of such patient and diag- nose-types (DRG) in selected hospital departments of Czech regional hospital. Revenue from insurance payments is com- pared with costs calculated via the Activity-Based Costing method so as to discern more accurately the proceeds of a given DRG and patient. The results of the study highlighted crucial differences between the income generated by indi- vidual cost objects (i.e. patients and DRGs). Utilizing such information could greatly benefit decision-making and en- hance cost effectiveness of the hospital services. However, any healthcare establishment worldwide is strictly curtailed in this by the ethical standards it must uphold when making decisions on potentially raising profitability. The final part of the study discusses the findings of the profitability analy- sis performed by the authors in the given context of general healthcare organizations management.


Received: November, 2014

1st Revision: January, 2015 Accepted: March, 2015


DOI:10.14254/2071- 789X.2015/8-1/18

JEL Classification: I11, M41

Keywords: healthcare organization, hospital profitability, costing, hospital management, Activity-Based Costing, pa- tient cost