• Title/Summary/Keyword: cost per use

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The Effects of the workforce Age Structure on Productivity or Labor Costs (사업체 근로자의 연령구성이 생산성과 인건비에 미치는 영향)

  • Kim, Ki-Min
    • Management & Information Systems Review
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    • v.37 no.1
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    • pp.123-138
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    • 2018
  • In this paper, we use panel dataset from Korean linked worker-firm to analyse the effects of the workforce age structure on the productivity or labor costs. We measure 'labor productivity' as added value per capita, 'cost of labor' as labor cost per capita and estimate a dynamic panel model to study the effects of the workforce age structure on the productivity or labor costs. Empirical analysis results show that the workforce age structure is positively related to productivity and labor costs, but only up to the aged of 35-39. That is, we find that an increase in the proportion of younger workers or elder workers rather than the aged 35-39 has a negative effect on productivity and labor cost. In particular, the difference between the estimation coefficient of productivity and labor cost when the share of workers aged 50 or older is increased instead of the aged 35-39 is higher than the difference between the estimation coefficient of productivity and labor cost when the share of workers aged 30 or younger is increased instead of the aged 35-39. Our results exhibit that it is reasonable for firms to worry about declining productivity of elderly workers, whereas firms already used older workers efficiently, such as by adjusting their labor costs.

Development of the Model for Activity Based Costing in the Hospital (의료기관의 활동기준원가 산출 모형)

  • Chun, Ki-Hong;Cho, Woo-Hyun;Kim, Bo-Kyung;Kim, Byung-Cho
    • Korea Journal of Hospital Management
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    • v.6 no.2
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    • pp.37-69
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    • 2001
  • A new cost management system, called Activity Based Costing (ABC) system, has arisen to solve the limitation of a Traditional Cost Accounting (TCA) system until last two decades and ABC has been applied by many companies. TCA systems have limitation in tracing cost because they arbitrarily allocate overhead cost to the cost objects without standard for direct cost distribution. ABC is an accounting system that assigns costs to products or services based on the resources they consume. The costs of all activities are traced to the products for which they are performed. Therefore ABC is a cost management system that provides a matrix to accurately quantify consumed resources triggered by activities and activities triggered by products and services. There is little implementation of ABC in the health services field, one of service industries, due to complicated and many activities, and volatile cost object. However, the necessity for applying reasonable cost accounting system is largely issuing as strategy responding hostile environment, and financial pressure, and it is imperative to implement the Activity Based Costing (ABC) system. Therefore, this study presents the framework to develop ABC system for total health service organizations. Cost objects in this study base on medical service activities per health insurance claim from one general hospital located in Metropolitan Statistical Areas (MSAs). Medical service activities include all health insurance claims in the hospital. The purpose of the study is presenting useful tools and basic frame to develop Activity Based Costing system for health service organizations which want to use ABC system. The steps to develop ABC system for health service organizations are following: 1. Identifying of activity centers; 2. Definition of cost objects and activity by activity center; 3. Analysis of activity and tracing activity contribution; 4. Allocation of direct cost for specific activity; 5. Allocation of indirect cost for specific activity; 6. Allocation of depreciation for facilities, applicants, and consumption goods; 7. Allocation of administration cost; 8. Allocation of cost among activity centers; and 9. Tracing cost of cost objects by activity center. This study identified necessary information from existing reports which hospitals generally made by each step, and defined outcome which had to be produced in each step using this information. The steps of this study had limitation to apply all different size hospitals because the steps were structured ABC system by one hospital, however, this study used similar basic framework and methods with general cases. When a health service organization want to apply Activity Based Costing (ABC) system on all activities of it in future days, this study is very useful to design system structure in the health service organization.

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The use of the telephone for a medical consultation for checking the examination results (검사 결과 확인을 위한 전화 진료의 활용)

  • Lee, Jung Won;Kim, Yeon Jung;Ahn, Sei Hyun;Park, Chan Heun
    • Korea Journal of Hospital Management
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    • v.18 no.1
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    • pp.59-69
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    • 2013
  • Purpose Patients should have a regular medical check-up, the cost direct and indirect medical expenses to check the results, and revisit the hospital. Some of patients often want to use the telephone for a medical consultation, Method The subjects participating in this study were a selection 485 patients who received outpatient service in Asan Medical Center and Gangbuk Samsung Hospital. The patients's favorite method for medical check-up, time, cost, fatigue, and inconvenience, in regard with the revisit to check the examination results, were researched and analyzed on identical questionnaires about them. Results The average transportation, food expenses and opportunity costs the subjects spent was 90,400 for those from the Seoul and Gyunggi area, and 269,800 from other area. And the average required time per visit was 4.13 hours for those from the Seoul and Gyunggi area, 11.84 hours from other areas, and averagely 7.72 hours for all the subjects. More than 75% of the subjects answered that they felt tired and their work was interrupted. The subjects from both areas preferred the check by phone. Conclusion If the scope of telephone medical consultation is defined and the doctor-patient certification is possible, it can be thought as an efficient alternative of the medical check-up by revisit. It is necessary to discuss an appropriate amount of the medical check-up by phone which the same cost and effort can be allocated in.

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The Effect of Tiered Copayment System on Pharmacy Benefit Expenditure of National Health Insurance in Korea: Scenario Analysis based on the Use of Oral Antidiabetic Medications (선택약가제도가 건강보험 약품비 지출에 미치는 영향: 경구용 당뇨병 치료제를 대상으로 한 시나리오 분석)

  • Kim, Nam Hyo;Choi, Kyung Eob;Sohn, Hyun Soon;Shin, In Chul;Shin, Hyun Taek
    • Korean Journal of Clinical Pharmacy
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    • v.24 no.2
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    • pp.126-134
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    • 2014
  • Purpose: This study was aimed to examine the financial effect of 2-tiered copayment system on annual expenditure of pharmacy benefit in the National Health Insurance (NHI) of Korea, focusing on oral antidiabetic medications. Methods: 284 oral antidiabetic products with 14 different active single ingredients listed in the National Formulary of NHI (August 2009) were assigned to tier 1 or tier 2 according to the selected criteria. 10 different combinations of coinsurance rates were selected to estimate the changes in drug expenditure cost of NHI. Results: The annual drug cost was estimated based on the drug price per unit listed in the National Formulary and the used amount of products in 2009 from the IMS Health data of Korea. In the combinations of coinsurance rate of 20% for tier 1 and 40% for tier 2, the total annual drug cost was estimated to be reduced by 1.3% in the case of no change of generic and original drug consumptions, and to be reduced by 4.3% in the case of 10% increased generic drug consumptions. Conclusion: The tiered copayment system with optimal coinsurance rates appears to be a potential strategy to reduce the financial burden of NHI in Korea by promoting the use of generic products.

Competition in the Hospital Service Market and Its Impact on Hospital Behavior in Korea (병원시장의 경쟁특성과 병원행태)

  • Park, Ha-Young;Kwon, Soon-Man;Jung, Young-Ho
    • Health Policy and Management
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    • v.18 no.1
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    • pp.1-20
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    • 2008
  • How health care providers compete and how competition among them affects their behavior are crucial questions in theory and health policy. In ordinary markets, competition improves social welfare, However in health care markets facing uncertainty and information asymmetry, competition can take the form of wasteful quality competition and result in cost increase. The purpose of this study is to examine the characteristics of hospital service markets and examine the impact of hospital competition on hospital behavior, more specifically hospital cost and the size of personnel. Based on patient discharge data of 2002 by the Ministry of Health and Welfare and Korea Institute for Health and Social Affairs, and health insurance EDI claims data of 2002, this study measures the degree of competition in the inpatient service market of hospitals, using variable radius method and Herfindahl index. The result of the study shows that the hospital service market consists of on average 3.13 government administrative units(shi, gun, or gu). Compared with hospitals, general or general specialized hospitals cover larger markets and operate in more competitive markets. Nearly 60% of patients use hospitals, which are not located in their government administrative units, meaning that market definition based on variable radius is better than the conventional method of market definition based on government administrative units. The results of multivariate analysis show that competition is not associated with high cost index of hospitals. But hospitals in more competitive markets employ larger(more intensive) input of personnel per 100 beds, implying that hospital competition in Korea can have the form of quality and cost-increasing competition.

Economic Assessment of the Heat Recovery from Incineration Plants Based on Regression Analysis (회귀분석을 이용한 소각장의 소각열 회수 경제성 분석 연구)

  • Yoon, Jungmin;Son, Hyeongmin;Park, Dong Yoon;Chang, Seongju
    • Resources Recycling
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    • v.23 no.3
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    • pp.3-12
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    • 2014
  • This study aims at providing an economic assessment for incineration plants which recover heat during its incineration process. In this study, Life Cycle Cost(LCC) of incineration plants is performed based on each regression analysis formula for construction cost, operation cost, and heat generation in order to compare economic feasibility. The result shows that the incineration plant recovering waste heat while processing 80 tons of waste per day increases both initial investment and operation cost but this type of an incineration plant has economical predominance from the recovered waste heat over the one that does not recover heat when being operated for more than eleven years if the retrieved heat replaces the use of LNG. And its payback time reaches more than 19 years in case of selling heat and performing emission trading.

A study on the Estimation Function of the Operating Cost for an Urban Railway (with a focus on Medium-sized Rapid Transit) (도시철도 운영비용 추정함수개발에 관한 연구 (중간규모 도시철도를 중심으로))

  • Chung, Su Young;Lee, Won Young
    • Journal of the Korean Society for Railway
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    • v.16 no.4
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    • pp.318-330
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    • 2013
  • It is necessary to estimate the operating cost for constructing an urban railway system. The present study was thus carried out to develop an estimation function of the operating cost for a MRT(Medium-sized Rapid Transit) system. We selected seven independent variables that could influence the operating cost: the rolling stocks, the number of trains in operation, the length of the lines, the number of stations, the number of passengers per day, the frequency of train operation, and the number of depots. We performed a multiple regression using Excel. Three types of regression functions were thereupon developed. All of them proved to be appropriate after comparing the results of the estimated cost. It will therefore be possible to use one of these three types, depending on the assumptions of the independent variables.

A Study on Realtime Cost Estimation Model of PC Laboratory Service based on Public Cloud (공용 클라우드 기반 PC 실습실 서비스의 실시간 비용 예측 모델 연구)

  • Cho, Kyung-Woon;Shin, Yong-Hyeon
    • The Journal of the Institute of Internet, Broadcasting and Communication
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    • v.19 no.3
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    • pp.17-23
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    • 2019
  • IaaS is well known as a very cost effective computing service which enables required infrastructures to be rented on demand without ownership of real hardwares. It is very suitable for price sensitive services due to pay-per-use style. Operators of such services would want to adjust utilization policy quickly by estimating costs for cloud infrastructures as soon as possible. However, swift response is not possible due to that cloud service providers provide a dozen or so hours delayed billing information. Our work proposes a realtime IaaS cost estimation model based on usages monitored by virtual machine instance. We operate PC laboratory service on a public cloud during full semester to validate our suggested model. From that experiment, an averaged disparity between estimation and actual cost is less than 5.2%.

A Study on the Applicability of the Population-Based Health Care Model: Focusing on Social Cooperative-type Medical Clinics in a Local Area (인구집단 기반 건강관리모형의 적용가능성 검토: 한 지역의 의료복지사회적협동조합형 의료기관을 중심으로)

  • Lee, Keun-Jung;Oh, Ju-Yeon;Lee, Da-Hee;Hahm, Myung-Il;Lee, Jin-Yong
    • Quality Improvement in Health Care
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    • v.26 no.2
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    • pp.95-103
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    • 2020
  • Purpose: This study was to examine whether a health care model that provides comprehensive medical services based on population groups to members of the medical cooperative is applicable as a policy alternative in terms of medical use and cost. Methods: Data were derived from National Health Insurance claim data in 2019. We compared the medical volume and expenses of patients who visited social cooperative-type medical clinics with other patients, control group who visited other clinics in a local area. Results: The average number of visit days was 25.3 days in social cooperative-type medical clinics, more than 24.2 days in the control group (p=.004). However, the average medical cost per visit was KRW 46 thousand in social cooperative-type medical clinics, which was significantly lower than KRW 51 thousand in the control group (p<.001), and the total medical cost was also KRW 16.1 billion in social cooperative-type medical clinics and KRW 16.9 billion in the control group. Conclusion: We identified that a population-based health care model might change patients' behaviors to health care services and decrease total medical cost. Further population based experiment is needed to develop alternative healthcare model.

A Study on the Meaning and Strategy of Keyword Advertising Marketing

  • Park, Nam Goo
    • Journal of Distribution Science
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    • v.8 no.3
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    • pp.49-56
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    • 2010
  • At the initial stage of Internet advertising, banner advertising came into fashion. As the Internet developed into a central part of daily lives and the competition in the on-line advertising market was getting fierce, there was not enough space for banner advertising, which rushed to portal sites only. All these factors was responsible for an upsurge in advertising prices. Consequently, the high-cost and low-efficiency problems with banner advertising were raised, which led to an emergence of keyword advertising as a new type of Internet advertising to replace its predecessor. In the beginning of 2000s, when Internet advertising came to be activated, display advertisement including banner advertising dominated the Net. However, display advertising showed signs of gradual decline, and registered minus growth in the year 2009, whereas keyword advertising showed rapid growth and started to outdo display advertising as of the year 2005. Keyword advertising refers to the advertising technique that exposes relevant advertisements on the top of research sites when one searches for a keyword. Instead of exposing advertisements to unspecified individuals like banner advertising, keyword advertising, or targeted advertising technique, shows advertisements only when customers search for a desired keyword so that only highly prospective customers are given a chance to see them. In this context, it is also referred to as search advertising. It is regarded as more aggressive advertising with a high hit rate than previous advertising in that, instead of the seller discovering customers and running an advertisement for them like TV, radios or banner advertising, it exposes advertisements to visiting customers. Keyword advertising makes it possible for a company to seek publicity on line simply by making use of a single word and to achieve a maximum of efficiency at a minimum cost. The strong point of keyword advertising is that customers are allowed to directly contact the products in question through its more efficient advertising when compared to the advertisements of mass media such as TV and radio, etc. The weak point of keyword advertising is that a company should have its advertisement registered on each and every portal site and finds it hard to exercise substantial supervision over its advertisement, there being a possibility of its advertising expenses exceeding its profits. Keyword advertising severs as the most appropriate methods of advertising for the sales and publicity of small and medium enterprises which are in need of a maximum of advertising effect at a low advertising cost. At present, keyword advertising is divided into CPC advertising and CPM advertising. The former is known as the most efficient technique, which is also referred to as advertising based on the meter rate system; A company is supposed to pay for the number of clicks on a searched keyword which users have searched. This is representatively adopted by Overture, Google's Adwords, Naver's Clickchoice, and Daum's Clicks, etc. CPM advertising is dependent upon the flat rate payment system, making a company pay for its advertisement on the basis of the number of exposure, not on the basis of the number of clicks. This method fixes a price for advertisement on the basis of 1,000-time exposure, and is mainly adopted by Naver's Timechoice, Daum's Speciallink, and Nate's Speedup, etc, At present, the CPC method is most frequently adopted. The weak point of the CPC method is that advertising cost can rise through constant clicks from the same IP. If a company makes good use of strategies for maximizing the strong points of keyword advertising and complementing its weak points, it is highly likely to turn its visitors into prospective customers. Accordingly, an advertiser should make an analysis of customers' behavior and approach them in a variety of ways, trying hard to find out what they want. With this in mind, her or she has to put multiple keywords into use when running for ads. When he or she first runs an ad, he or she should first give priority to which keyword to select. The advertiser should consider how many individuals using a search engine will click the keyword in question and how much money he or she has to pay for the advertisement. As the popular keywords that the users of search engines are frequently using are expensive in terms of a unit cost per click, the advertisers without much money for advertising at the initial phrase should pay attention to detailed keywords suitable to their budget. Detailed keywords are also referred to as peripheral keywords or extension keywords, which can be called a combination of major keywords. Most keywords are in the form of texts. The biggest strong point of text-based advertising is that it looks like search results, causing little antipathy to it. But it fails to attract much attention because of the fact that most keyword advertising is in the form of texts. Image-embedded advertising is easy to notice due to images, but it is exposed on the lower part of a web page and regarded as an advertisement, which leads to a low click through rate. However, its strong point is that its prices are lower than those of text-based advertising. If a company owns a logo or a product that is easy enough for people to recognize, the company is well advised to make good use of image-embedded advertising so as to attract Internet users' attention. Advertisers should make an analysis of their logos and examine customers' responses based on the events of sites in question and the composition of products as a vehicle for monitoring their behavior in detail. Besides, keyword advertising allows them to analyze the advertising effects of exposed keywords through the analysis of logos. The logo analysis refers to a close analysis of the current situation of a site by making an analysis of information about visitors on the basis of the analysis of the number of visitors and page view, and that of cookie values. It is in the log files generated through each Web server that a user's IP, used pages, the time when he or she uses it, and cookie values are stored. The log files contain a huge amount of data. As it is almost impossible to make a direct analysis of these log files, one is supposed to make an analysis of them by using solutions for a log analysis. The generic information that can be extracted from tools for each logo analysis includes the number of viewing the total pages, the number of average page view per day, the number of basic page view, the number of page view per visit, the total number of hits, the number of average hits per day, the number of hits per visit, the number of visits, the number of average visits per day, the net number of visitors, average visitors per day, one-time visitors, visitors who have come more than twice, and average using hours, etc. These sites are deemed to be useful for utilizing data for the analysis of the situation and current status of rival companies as well as benchmarking. As keyword advertising exposes advertisements exclusively on search-result pages, competition among advertisers attempting to preoccupy popular keywords is very fierce. Some portal sites keep on giving priority to the existing advertisers, whereas others provide chances to purchase keywords in question to all the advertisers after the advertising contract is over. If an advertiser tries to rely on keywords sensitive to seasons and timeliness in case of sites providing priority to the established advertisers, he or she may as well make a purchase of a vacant place for advertising lest he or she should miss appropriate timing for advertising. However, Naver doesn't provide priority to the existing advertisers as far as all the keyword advertisements are concerned. In this case, one can preoccupy keywords if he or she enters into a contract after confirming the contract period for advertising. This study is designed to take a look at marketing for keyword advertising and to present effective strategies for keyword advertising marketing. At present, the Korean CPC advertising market is virtually monopolized by Overture. Its strong points are that Overture is based on the CPC charging model and that advertisements are registered on the top of the most representative portal sites in Korea. These advantages serve as the most appropriate medium for small and medium enterprises to use. However, the CPC method of Overture has its weak points, too. That is, the CPC method is not the only perfect advertising model among the search advertisements in the on-line market. So it is absolutely necessary that small and medium enterprises including independent shopping malls should complement the weaknesses of the CPC method and make good use of strategies for maximizing its strengths so as to increase their sales and to create a point of contact with customers.

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