the use of cost comparison in hospital structures:

a survey of results in italy and scotland

 

Riccardo Mussari and Antonio Barretta

 

Abstract

     Cost comparison among firms and  the relative need to achieve uniform costing for firms addressed by comparison are established themes in cost accounting literature. However, they have not received much attention recently in international research. Cost comparison among firms remains nevertheless a widespread practice in various areas of the economy, especially those with public sector participation. The aim of this research project is to focus attention on the practices of uniform costing and cost comparison among firms so as to underline how these techniques, formulated over a century ago to serve different purposes from their present applications, may still be put to optimal use.

     This research project will make reference to data collected in the health sectors of two countries where cost comparison is practiced: in Italy and Scotland. Observation of practices in the two countries makes it possible to discern that the aims underlying their adoption of cost comparison are analogous, in spite of their highly distinctive national health service structures. The two countries furthermore encountered similar difficulties in seeking to perfect these techniques.