The First Hospital of Jilin University

The First Hospital of Jilin University is one of China's National Regional Medical Centers. It applies an innovative service-item costing method that combines the equivalence method with activity-based costing. Taking the China’s National Performance Assessment of Tertiary Public Hospitals as its guide, the hospital strengthened top-level design and the division of responsibilities, breaking every indicator down level by level and assigning it to specific posts and individuals. It built a quantitative workload evaluation model that measures service volume on the basis of DRGs and defines the evaluation criteria together with labor intensity, complexity and technical risk. It also adjusted its cost control plan to strengthen cost awareness, embedded key indicators in the scheme and set up dedicated incentives. In department-level bonus allocation, each department allocates separately to its director and head nurse.

The hospital set up an operations management and cost control department and recruited specialty operations assistants to collect data and feed back cost analyses. The platform uses the BCG growth-share matrix to help departments strengthen their clinical capabilities. Since implementation, the hospital's regional reach has continued to grow.