Financial managers use financial resources and the cost
classifications to allocate direct/ indirect costs when attempting to
figure out how to charge patients by using the visit summary and
placing it into categories. b Health organizations use charts to
determine what specific areas that would generate the most
monetary profit. There are four methods to allocate direct and
indirect costs according to (Nowicki). A direct cost can be an in-
house surgery center where small procedures can be done with
twilight anesthesia. An indirect cost could be lights/ dry cleaning/ off-
site supplies meaning items that are not in the office but located near.
The utilization office should get prior authorization so there are no
delays in payments. Also, discharging patients in a proper time
manner, or doing a proper observation before admittance. These
things would help generate proper payments.
Nowicki, M. (2018). Introduction to the Financial Management of
Healthcare Organizations (7th ed.). Chicago, IL: Health
Administration Press.
