Glossary

Account Code
Account Code is a unique record for each type of asset, liability, equity, revenue and expense.
Admission process
An admission process is the process as defined (METeOR ID: 327206).
Admitted patient products
Admitted patient products are the services provided to patients who undergo an admission process, where the process of admission is defined in (METeOR ID: 327206);
Allocation Methodology
Allocation methodology is the process selected to allocate the identified cost to the cost objects.
Allocation statistics
Types of cost allocation bases that use financial or non-financial data to allocate costs aggregated in an overhead cost centre to relevant production cost centres. These values measure the relative consumption of products and/or services produced by those organisational units that are not directly involved in patient care.
Ambulance services
Ambulance Services refer to organisations primarily engaged in providing transportation of patients by ground or air, along with health (or medical) care. These services are often provided during a medical emergency but are not restricted to emergencies. The vehicles are equipped with lifesaving equipment and are operated by medically trained personnel. It includes organisations providing public ambulance services or flying doctor services such as Royal Flying Doctor Service and Care Flight, and support programs to assist isolated patients with travel to obtain specialised health care.
Asset recognition threshold
Asset Recognition Threshold is the amount selected as appropriate for recognising assets, taking into consideration materiality and practicalities of maintaining the asset on an asset register. Amounts below this threshold are expensed at the time of purchase, those above must be capitalised.
Australian asset recognition threshold
Australian Asset Recognition Threshold: for all hospital property, plant and equipment the amount should be no greater than $10,000. (AASB 16 Property, Plant and Equipment).
Blood products and services
Blood Products are products that can be manufactured by simple separation of blood into its components via centrifugation. Blood Products and Services are defined under the National Blood Agreement. For example, IVIG, factors, platelets, red blood cells etc.
Building depreciation
Building Depreciation includes fixtures such as items fitted to the building such as lights.
Causal Relationship (Causality)
Causal relationship (causality) implies that costs matched to a cost object have originated as a direct result of the production of that cost object. This may arise via: A physical relationship between expenses and products; for example the price paid by the organisation for a given pharmaceutical that is dispensed to a patient. In this instance, producing more units requires more resources, thus results in a higher total costs. A contractual arrangement of a department with an external provider; for example the amount charged by an external pathology provider to undertake a requested test. A contractual arrangement is an enforceable agreement between two or more parties that requires something to be done by one or both. Knowledge of operations, for example, the total cost of nursing staff on a given ward may be allocated proportionally to the patients receiving treatment on that ward. Knowledge of operations is both explicit and tacit knowledge held by staff in an organisation that allows them to undertake activities, implement process or manage resources to produce that organisation's products effectively.
Chart of Accounts
Chart of Accounts refers to a numbered list of all the accounts in the hospital's general ledger.
Clinical services
Clinical services are related to the observation or treatment of a patient within a health setting. There are many types of clinical services across various disciplines in a health care setting, including in the fields of Medicine, Surgery, Emergency and non-critical High dependency care. These services are typically non-urgent in nature, and can be admitted and non-admitted in nature. Clinical services include all services, admitted and non-admitted, except those that are ancillary and highly resource intensive in nature which are categorised separately
Commercial business units
Commercial business units - are organisational units within a hospital that generate non-patient products for which revenue is obtained from third parties, including but not limited to hospital patients and staff.
Consultation (or clinical) Liaison
Consultation (or clinical) Liaison refers to the process where a patient who is under the care of one clinician (who holds the medical governance/bed card) is consulted by (another) clinician or team or is provided a liaison (or advisory) service to that treating clinician or team providing care to the patient. Examples include a 'second opinion', advice on a particular problem, a case review, a one-off assessment or therapy session.
Contracted care
Contracted Care refers to care provided to a patient under an agreement between a purchaser of hospital care (contracting hospital or external purchaser) and a provider of an admitted or non-admitted service (contracted hospital).
Contractual arrangement
A contractual arrangement is an enforceable agreement between two or more parties that requires something to be done by one or both. For the purpose of this standard, these agreed actions may provide a basis to measure an activity that drives total costs.
Coronary Care Unit (CCU)
A facility dedicated to acute care services for patients with cardiac diseases (Meteor ID 619758)
Corporate overheads
Corporate overheads refer to expenses related to the management of hospital bodies where expenses are reported outside of the hospital cost centre structure. In some instances, these expenses relate to management bodies of a body of hospitals such as Boards at the Local Health Network (LHN) level in the public sector or head office (or organisational body) expenses of bodies operating multiple hospitals in the private sector.
Cost allocation
Cost allocation is the process whereby expenses are allocated to cost objects using cost allocation bases.
Cost Ledger
The cost ledger provides the framework to be used in product costing. It generally follows the hospital general ledger, but is arranged according to a series of cost centres and account codes for costing purposes.
Cost object
In general terms, cost accounting requires an organisation to measure the cost of its outputs. In this context, the output that is being measured is important and will vary depending on an organisations business decision-making needs. Cost outputs are the items that the organisation has identified important to measure for its own business decision-making needs. As an example, it can vary from measurements of expense for such things as the hospital, a department, unit, service, program, activity, task, tangible good, patient, patient event or a patient day. This may be either in intermediate product (for example a pathology test) or a final product (for example an admitted episode)
Critical Care Unit
Critical Care Unit refers to a separate and self-contained area of a hospital dedicated to the management of patients with life-threatening illnesses, injuries and complications, and monitoring of potentially life-threatening conditions. It provides special expertise and facilities for support of vital functions and uses the skills of medical, nursing and other personnel experienced in the management of these problems. (College of Intensive Care Medicine).
Critical Services
Critical services require invasive life support, high levels of medical and nursing care and complex equipment. They include those services provided in an Intensive Care Unit (ICU) as defined by IHPA.
Depreciation
Depreciation refers to the reduction in value of an asset over its useful life. This reduction in value occurs for example due to age and wear and tear.
Direct Teaching and training products
Direct Teaching and Training products are activities as defined in (METeOR ID: 572982).
Economically feasible
Economic feasibility refers to acting with reasonableness when determining the effort required to directly allocate costs to cost objects with accuracy against the additional resource cost and effort required to do so. Economic feasibility will be influenced by a number of factors, such as: Availability of (costing) information or (costing) information systems; Design of operation that allows for exclusive use of a particular expense by a particular cost object.
Emergency Department
Emergency Department is a dedicated department responsible for triage, assessment, treatment, observation and disposition of emergency patient presentations (Meteor ID: 327158 and Definition of ED services, IHPA). These include both urgent and non-urgent conditions for a broad spectrum of diseases and illnesses, some of which may be life threatening and require immediate attention. It also includes provision for resuscitation.
Emergency department products
Emergency Department patient products are emergency services provided in an organisation, as defined in (METeOR ID: 652825).
Equipment depreciation
Equipment Depreciation includes non-fixed building fit-out such as theatre tables, moveable furniture and chemotherapy chairs.
Expenses
Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants (AASB CF, 70 (b)). The definition of expenses encompasses those expenses that arise in the course of the ordinary activities of the organisation including losses. Expenses that arise in the course of the ordinary activities of the organisation include, for example, wages and depreciation. They usually take the form of an outflow or depletion of assets such as cash and cash equivalents, inventory, property, plant and equipment (AASB CF, 78).
Feeder Data
Feeder Data refers to the collection of information from various hospital departmental systems used in the day to day operations of a hospital, generally for patient care purposes. These systems are used by hospital staff to record patient level information or the resources required by patients from those hospital service areas as part of the care process. The term "feeder" is generally used to describe the extract taken from these systems which is, after review, "fed into the costing system" for costing purposes.
Final cost centre
A final cost centre is a collection of costs, allocated from both Production and Overhead cost centres which are applicable to delivery of the Final Product.
Final Cost Object
Final Cost Objects are outputs of a production cost centre that are not consumed by another production cost centre and are not intermediate products.
Financial or non-financial allocation
Financial or non-financial allocation statistics are types of cost allocation bases that use financial or non-financial data respectively to allocate expenses aggregated in an overhead cost centre to relevant production cost centres.
Full cost
Full cost includes the costs of goods and services consumed by an organisation, including those provided by a third party that are consumed to produce the organisation's outputs.
General ledger
The general ledger holds a set of accounts that summarise all transactions occurring within an organisation and is used to create its financial statements.
High Dependency Unit
HDU is High Dependency Unit (HDU) is a dedicated area that provides high dependency nursing care and is an area of observation for patients of higher needs than general. A HDU may be specialty specific under critical care, for example, Cardiac Surgery HDU and may exist as an attachment to or step down from either ICU or Coronary Care Unit (CCU). A HDU may be non-critical in nature and may reside within a medical or a surgical clinical ward for the purposes of close observation and provision of high levels of nursing care.
Hospital boarder
A hospital boarder is a person who is receiving food and/or accommodation at the hospital but for whom the hospital does not accept responsibility for treatment and/or care. Hospital boarders are not admitted to the hospital. However, a hospital may register a boarder. Babies in hospital at age 9 days or less cannot be boarders. They are admitted patients with each day of stay deemed to be either qualified or unqualified (METeOR ID: 491557).
Hotel services
Hotel Services -refer to services that provide domestic services within the hospital and are not directly related to patient care and include: - cleaning products and services; - linen and laundry services; - food services (patients); and - general hotel services.
Imaging services
Imaging services use techniques and processes of creating visual representations of the interior of a body for clinical analysis and diagnosis (METEoR ID: 525782). The techniques include invasive radiology, non-invasive radiology and nuclear medicine. Imaging is a function that is not restrictive to a particular location in a hospital, even if there is a dedicated department within a hospital. Often the services are mobile to various locations in a hospital to provide services to patients that are not mobile.
Insurance
Insurance refers to the coverage by contract by which one party (generally an insurance provider) agrees to indemnify or reimburse another for loss that occurs under the terms of the contract. A number of areas such as staff and their clinical practice and buildings within the hospital are generally insured. The insurance contract generally specifies the financial premium or amount that is paid. This payment is an expense deemed within scope.
Intangible asset
Intangible Asset refers to an identifiable non-monetary asset without physical substance with a life span of greater than one year. For example, software.
Intensive Care Unit
An ICU (METeOR ID: 327234) provides special expertise and facilities for the support of vital functions and utilises the skills of medical, nursing and other staff trained and experienced in the management of these problems.
Inter-hospital contracted care
Inter-hospital contracted care refers to an episode of care for an admitted patient whose treatment and/or care is provided under an arrangement (either written or verbal) between a hospital purchaser of care (contracting hospital) and a provider of an admitted service (contracted hospital) and for which the activity is recorded by both hospitals.
Intermediate products
Intermediate products are outputs of a production centre that are further refined or provided to another production centre to contribute to the production of an organisations final products, for example pathology testing to support diagnosis by the clinician within a non-admitted episode.
Internal patient transport
Internal Patient Transport is non-emergency road transport between campuses or facilities within a health service in a vehicle owned and operated by the health service.
Interpreter services
Interpreter Services refer to professional service providers being used to facilitate communication between people. It includes verbal language such as languages other than English. It also includes non-verbal communication such persons requiring interpreter services for any form of sign language.
Knowledge of operations
Knowledge of operations is both explicit and tacit knowledge held by staff in the organisation that allows them to undertake activities, implement process or manage resources to produce the organisation's products effectively.
Labour cost
The definition of labour costs is adapted from ABS Labour Statistics: Concepts, Sources and Methods Cat: 6102.0.055.001 - Employee Remuneration, and is based on the concept of cost to the employer in the employment of labour. In this context labour cost relates to: - employee salaries and wage; - contributions by employers, on behalf of their employees, to social security; and - all other costs borne by employers in the employment of labour such as costs of training, welfare services to employees, payroll taxes etc.
Line Items
A series of mapped account codes. See Attachments.
Matching
Matching is a general term in product costing that covers both: Matching expenses to a cost object directly when the expense can be easily identified as having a direct causal relationship ie the cost was generated as a direct result of the use of the cost object in the delivery of the hospital service, for example the price paid a given pharmaceutical prescribed to the patient; and matching expenses by means of allocation where they cannot that cannot be directly matched to the cost object, for example the allocation of the cost of nursing staff on a given ward to the patients receiving care on that ward.
Materiality
Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions of users taken on the basis of the financial statements. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. The size or nature of the item, or a combination of both, could be the determining factor. (AASB 1031)
Multiple health care providers
Multiple health care providers refer to two or more health care providers delivering care either individually or jointly within a non-admitted patient service event. The health care providers may be of the same profession (medical, nursing or allied health). However, they must each have a different speciality so that the care provided by each provider is unique and meets the definition of a non-admitted patient service event. In practice, this should be interpreted as meaning that the patient can separately identify the unique care provided by each healthcare provider.
National data collection/National Datasets
The term national data collection refers to any National Minimum Data Set or National Best Endeavours Data Set.
Negative Costs
Negative Costs refer to less than zero dollars which appear following the costing process for costed products at the individual account line item and cost centre level.
Non Admitted Clinic/Non-admitted patient service units
Non Admitted Clinic/Non-admitted patient service units are a recognised clinical team of one or more healthcare providers within a hospital, multi-purpose service or community health service that provides non-admitted patient services and/or non-admitted patient support activities.
Non-admitted patient
Non-admitted patient means services as provided as defined in (METeOR ID: 584028)
Non-Emergency Patient Transport (NEPT)
Non-Emergency Patient Transport (NEPT) refers to non-emergency road transportation to or from a health or diagnostic facility, inter-hospital transfers and transport to or from non-acute health services such as residential aged care and Community Health Services. NEPT only refers to road transport and must always be requested by a clinician.
Non-patient products
Non-patient products are all goods and service that the organisation may provide other than patient products.
Offsetting
Offsetting means the reduction of an expense by income or vice versa so that only the net amount is reflected in product costing. Income and expenses should only be offset where offsetting reflects the substance of the transaction.
Operating lease costs
This category includes all operating leases in line with Australian Accounting Standard 117. Capital leases' are excluded from this category.
Operating room
Operating room refers to a designated area of a hospital where significant surgical procedures are carried out under surgical conditions under the supervision of qualified medical practitioners. The operating room must be equipped to deliver general anaesthesia and conform to the College of Anaesthetists and the Faculty of Intensive Care standards. (METeOR ID 584569).
Order request point
Order Request Point refers to the area within the hospital that orders or prescribes an intermediate product/service. It can also be known as Point of Service.
Organ/tissue retrieval team
Retrieval Team refers to a group of hospital staff engaged in the procurement of human tissue and organs. They are generally situated within a jurisdictional specific hospital and the core retrieval team generally comprises a surgeon, assistant surgeon, theatre technician to provide perfusionist services). They will also carry with them a range of medical and surgical supplies, drugs, perfusion solution and retrieval related goods and services. The retrieval team is generally supported by staff within the theatre setting to assist with the retrieval process. This staff support, including theatre nurses will be the retrievals own support team if the retrieval is undertaken within its own hospital (Hospital A see below), or staff from the external hospital (Hospital B see below), if the retrieval occurs externally.
Other Non-patient products
Other Non-patient products are not further sub-divided and may include, but not limited to, commercial services
Outreach and specialist services
Outreach and Specialist Services are: hospital-based outreach services events relate to treatment of patients by hospital staff in a location that is not part of the hospital campus (such as in the patient's home or place of work (METeOR: 327172); examination, consultation, treatment or other services provided as individual sessions to non-admitted patients through the outreach services of an establishment not defined elsewhere (METeOR: 270514)
Overhead cost centre
An overhead cost centre is a collection of costs that are not related directly to the delivery of Products but which are required for the delivery of the service and therefore need to be allocated to final cost centres.
Overhead expenses
Overhead expenses refer to expenses of services within the hospital that generally relate to organisational services that are not directly involved in patient care, such as the functions of the Chief Executive Officer, Department of Finance and Patient Level Costing.
Partially completed final products
Given the nature of an organisation's activities, production may span one or more reporting periods. Partially completed final products are those products, which in the Reporting Period are yet to be completed.
Pathology Services
Pathology services are goods and services used in the provision of a pathology service and consumables (including reagents, stains and calibration products, etc.) or the actual cost as billed by a provider. Pathology functions are generally spread across three functional areas including diagnostic, blood products and management of adverse drug reactions. Whilst most pathology functions are performed within a centralised laboratory setting, there may be mobile resources which attend to a given patient as required in any setting. Hence, the functions may not be restrictive to a particular location or setting
Patient products
Patient products are either: health services provided to someone for the purpose of: Assessing, recording, maintaining or improving the physical, mental or emotional health, comfort or wellbeing of the service user; Diagnosing or treating an illness, disability, disorder or condition of the service user. services provided by health professionals and non-professionals under their supervision to a patient.
Pharmaceuticals
Pharmacy costs are goods and services used in the provision of a pharmaceutical service and consumables or the actual cost as billed by a provider. They include the purchase, production, distribution, supply and storage of drug products and clinical pharmacy services of both PBS reimbursed pharmaceuticals and PBS non-reimbursed pharmaceuticals.
Posthumous organ procurement
Posthumous Organ Procurement refers to an activity undertaken by hospitals in which human tissue is procured for the purposes of transplantation from a donor who has been declared brain dead (Meteor identifier 327258) Diagnoses and procedures undertaken during this activity, including mechanical ventilation and tissue procurement, should be recorded in accordance with the relevant ICD-10-AM Australian Coding Standards. These patients are not admitted to the hospital but are registered by the hospital (METeOR ID: 491557).
Private Patient
Private patient refers to a person who elects to be treated as a private patient and elects to be responsible for paying fees for the type referred to in clause 49 of the Australian Health Care Agreements (2003-2008) (METeOR: 566080). Clause 49 states that: Private patients, compensable patients and ineligible persons may be charged an amount for public hospital services as determined by the state or territory. All patients in private hospitals (other than those receiving public hospital services and electing to be treated as a public patient) are private patients. Includes: all patients who are charged (regardless of the level of the charge) or for whom a charge is raised for a third party payer (for example, Department of Veterans' Affairs and Compensable patients). Also includes patients who are Medicare ineligible and receive public hospital services free of charge at the discretion of the hospital, and prisoners, who are Medicare ineligible while incarcerated.
Product
For the purposes of these standards, products provided by an organisation are categorised into patient and non-patient products.
Product cost
Product cost refers to the sum of all expenses assigned to a product.
Production Cost Centre
A production cost centre (production centre) is a collection of costs within the Cost Ledger that relate to a department or production unit, which creates a range of related products. For patient products, these relate to the delivery of patient care.
Program fractions/product fraction
Program fractions are ratios applied to production cost centres that relate to the various product categories associated with patient or non-patient products. These include, but are not limited to, admitted, non-admitted, emergency, teaching and training'
Prostheses
An artificial substitute or replacement of a part of the body
Prostheses List
The Prostheses List is the list of surgically implanted prostheses, human tissue items and other medical see attachment A) http://www.health.gov.au/internet/main/publishing.nsf/Content/health-privatehealth-prostheseslist.htm
Recovery
Recovery refers to an amount recovered for the provision of a product and/or service by a hospital to a third party (i.e. not a hospital patient or staff member).
Relative value unit
A relative value unit is a weighted unit that reflects the comparative costs of production of one product/service against another, across the full range of products/services produced within the same department.
Reporting Period
Reporting Period is any timeframe in consideration by the organisation, this is usually a financial year.
Research
Research is an activity undertaken in a public health service where the primary objective is the advancement of knowledge that ultimately aims to improve patient health outcomes and/or health system performance. The activity must be undertaken in a structured and ethical way, be formally approved by a research governance or ethics body, and have potential for application outside of the health service in which the activity is undertaken. For ABF purposes, the definition of research relates to the public health service's contribution to maintain research capability, excluding the costs of research activities that are funded from a source other than the state or territory or provided in kind
Research products
A study or activity which has a formal methodology and structured plan and which has been successful with a formal governance or ethics approval process. (METeOR ID: 586750)
Revaluation method
Revaluation method: after recognition as an asset, an item of property, plant and equipment whose fair value can be measured reliably shall be carried at a re-valued amount, being its fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Rights of Private Practice (RoPP)
RoPP in public hospitals, refers to a formal agreement entered into between the hospital and the medical practitioner that allows the medical practitioner to treat and bill private patients. Approaches adopted across the nation vary but generally range from arrangements in which: Doctors are paid a private practice allowance as a proportion of their salary, while hospitals receive any monies generated from private patients; and Doctors pay their revenue from private practice, or a portion thereof, into a special purpose account (SPA) for use in the hospital. For the purposes of this Business rule, three types of arrangements are defined, although other arrangements may exist: 100% Donation Model: Under this model, all funds generated through MBS billing of private patients are 'donated' to the hospital. In exchange, the hospital gives the specialist access to the staff, facilities and equipment to support the treatment of private patients. Specialists may also negotiate additional salary or fee-for-service to compensate for the foregone MBS income. Income donated to the hospital under this model is held in a SPA according to the specialist's craft group. Funds in these SPAs are used by the hospital on activities of its choice, although the individual specialist may negotiate particular types of expenditure allowed from the account. 100% Retention Model: Under this model, medical specialist retains all income derived through MBS billing of private outpatients. In exchange for use of the hospital facilities and access to its staff, the specialist provides the hospital with a facility fee. Shared model: under this model, the hospital and specialist agree to share the revenue derived from MBS billed services. The hospital provides administrative support, access to staff, facilities and equipment for a portion of the Medicare benefit assigned by the patient. The Hospital may be authorised to act as agent in claiming Medicare benefits, which it then places in an SPA. Individual accounts are maintained for each specialist from where proceeds are distributed or shared with the specialist according to the agreement terms.
Royal Flying Doctor Service
Royal Flying Doctor Service is an organisation that provides aerial emergency medical and primary health care services to those in rural and remote Australia.
Service weight
A service weight is a series of weightings by specified categories (for example DRG) and by cost bucket which are a relative measure of resource use within a category. In the case of service weights, a weighting is applied at the classification level and it assumes that on average the relative consumption of resources for episodes within that classification is on average similar.
Shared services
Shared Services refer to centralised services provided by an organisation to one or more hospitals as a measure of efficiency of scale and scope. Shared services examples may include scenarios where some hospitals will share a common ICT platform, Human Resources function, procurement, food services or pharmacy services. The hospital may either host the service or be the recipient of the service.
Short stay assessment
Short stay assessment (METeOR ID: 655704) is, as follows: Designated and designed for the short term treatment, observation, assessment and reassessment of patients initially triaged and assessed in the emergency department (ED) Have specific admission and discharge criteria and policies Designed for short term stays no longer than 24 hours Physically separated from the ED acute assessment area Have a static number of beds with oxygen, suction, patient ablution facilities Not a temporary ED overflow area nor used to keep patients solely awaiting an inpatient bed nor awaiting treatment in the ED Clinical Emergency care also includes non-urgent emergency care, as per the IHPA Emergency Services definition
Special Purpose Account (SPA)
SPAs fall into two major categories: Those which hold moneys that the hospitals have some level of control to use on hospital activities. Moneys in these accounts may include sources other than RoPP and contain monies from donations and bequests, grants, fees and charges and or funds received for a specific purpose. These moneys may be subject to external restrictions so that they can only be used by the hospital for a specific purpose and may include things such as research purposes, identified business activities, clinical trials, travel, educational and other specific purposes. Trust accounts that hold money on behalf of third parties, such as voluntary organisations attached to the hospitals and patients' private cash. These are true trusts as the hospitals have no legal rights to this money and cannot use these funds for hospital activities. Moneys in SPA, irrespective of their funding source, are subject to the same accountability standards that apply to all public funds.
Specialised Procedure Suite (SPS)
Specialised Procedure Suite (SPS) refers to a designated area of a hospital where surgical and non-surgical procedures are performed by an appropriately qualified clinician (including medical scientists)
Teaching and Training
Teaching and training refers to the activities provided by or on behalf of a public health service to facilitate the acquisition of knowledge, or development of skills. These activities are required for an individual to: attain the necessary qualifications or recognised professional body registration to practice; acquire sufficient clinical competence upon entering the workforce for practising their discipline; or undertake specialist/advanced practice in Medicine, Dentistry, Nursing, Midwifery or Allied Health. A number of activities can be identified as Teaching and training within a health service. These include: Direct activities - are distinct and separable activities that occur outside an episode of care but are directed towards skills and knowledge development (in the case of teaching and training). Direct activities may include lectures, tutorials, simulations and workshops. Indirect (overhead) activities - are those 'back office' administrative and coordination activities undertaken by a health service that are essential to facilitate teaching and training activities. These activities may include the coordination of pre-entry student placements, rotations, educational program development or negotiation with higher education providers. The medical, nursing, and allied health administration departments usually coordinate these activities within health services. Embedded activities - which describe where Teaching and Training occurs in conjunction with patient care.
Third party expenses
Third party expenses are those expenses incurred by a third party on behalf of an organisation for the production of the organisation's outputs. Third party expenses are not recorded in an organisation's general ledger as they are not incurred by that organisation.
Traceable costs
Traceable costs are costs that are incurred solely for particular activities or to particular cost objects. They are usually the actual cost (such as the price paid to obtain the resource) and can be matched (traced) to the activity, intermediate product or patient activity.
Useful life
Useful life refers to the period over which an asset is expected to be available for use by an entity.
Virtual Product
Products used to manage costs in the general ledger which are not related to delivery of patient services
Visiting Medical Officers (VMOs)
Visiting Medical Officers (VMOs) are defined as 'a medical practitioner appointed by the hospital to provide medical services for hospital (public) patients in an honorary, sessionally paid or fee-for-service basis'. VMOs are entitled to on-call and call-back allowance and public holiday allowance on top of their 'contracted' services payments.
Wages and salaries
Salaries and wages are the remuneration, in cash or in kind, payable to a person counted on the payroll and paid in return for work done during the accounting period. These include payments or in kind benefits received by a person in return for work done, including: Ordinary time and overtime payments Payments by results gratuities, commissions and tips bonuses or incentive payments ex gratia payments severance payments lodging, transport or cost-of-living taxable allowances attendance fees payments under profit sharing schemes all salary sacrificed (including associated taxes such as FBT and superannuation contribution tax)
Work in Progress
Production of some final products may span one or more reporting periods, for example, a patient admitted prior to the start of the reporting period and discharged after the end of the reporting period. Work in progress includes: Final products commenced prior to the start of the reporting period and completed within the reporting period 
Final products commenced within the reporting period and completed after the end of the reporting period 
Final products commenced prior to the start of the reporting period and continuing on after the end of the reporting period.

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