Training Course on Healthcare Costing and Budgeting

Module 1: Fundamentals of Healthcare Costing and Budgeting
Introduction to financial management in healthcare: Why costing and budgeting matter in hospitals, clinics, and health programs.
Key concepts: revenues, expenses, assets, liabilities, fixed costs vs. variable costs, and cost centers.
Healthcare financing landscape: government budgets, insurance, donor-funded projects, and out-of-pocket payments.
The link between financial planning and quality of care.
Practical Exercise: Mapping cost flows in a hospital department (e.g., emergency unit).

Module 2: Costing Methods in Healthcare
Overview of cost accounting systems:
Job order costing (e.g., specialized surgery).
Process costing (e.g., lab testing).
Activity-based costing (e.g., diagnostic imaging).
Costing in practice: calculating unit costs of patient services.
Step-down costing vs. micro-costing approaches.
Integrating costs with health outcomes to measure efficiency.
Case Study: Calculate the cost of a vaccination campaign using activity-based costing.

Module 3: Budgeting Frameworks and Techniques
Types of budgets in healthcare:
Operating budgets (day-to-day expenses).
Capital budgets (equipment, infrastructure).
Program budgets (e.g., maternal health programs).
Flexible budgets (responding to service volume changes).
Budgeting approaches:
Incremental budgeting vs. zero-based budgeting.
Line-item vs. performance-based budgeting.
Revenue forecasting: estimating income from services, donors, and reimbursements.
Aligning budgets with strategic health goals.
Group Exercise: Create a zero-based budget for a rural health clinic expanding maternal health services.

Module 4: Managing Costs and Resource Allocation
Cost control and efficiency strategies: reducing waste, optimizing workforce, energy savings.
Variance analysis: identifying and explaining differences between planned vs. actual spending.
Resource allocation principles: equity, efficiency, transparency.
Decision-making under financial constraints: trade-offs in healthcare funding.
Using costing information to support pricing and reimbursement decisions.
Activity: Hands-on variance analysis with a sample hospital budget sheet.

Module 5: Advanced Applications and Future Directions in Healthcare Budgeting
Performance-based budgeting: linking funds to measurable health outcomes.
Costing and budgeting for universal health coverage (UHC).
Role of digital tools and analytics: Excel-based modeling, budgeting software, and dashboards.
Managing financial sustainability in times of crisis (pandemics, donor withdrawal, inflation).
Effective communication of financial data: preparing reports for boards, ministries, or donor agencies.
Capstone Project: Teams develop a comprehensive budget and cost analysis report for a healthcare program (e.g., a new HIV treatment center or
primary care expansion initiative)