I think that there were many studies about how to manage the cost in hospitals. See for example this blog: https://www.linkedin.com/pulse/why-hospital-procurement-matters-tom-williams or here:  http://sharinghealthcaresolutions.covidien.com/hospital-procurement-study-quantifying-supply-chain-costs-for-distributor-and-direct-orders

The basic problem is as follows. On one hand, costs for treating a certain patient in some cases can go without limit. On the other hand, due to asymmetric information hospital can overspend. That is why regulator is interested in such contract with hospitals that they spend money in the most efficient way.

I heard about incentive-compatible contracts where compensation for spending is not full but creates incentives to spend less. At the same time, absolutely necessary services for patients should not be rejected.

Thank you Yuri Yegorov

Try Activity Based Costing

Dear Dr. Al-Fateh -Amin A/Rahim El-Fakki,

I have attached some useful resources that include strategic, productivity, quality and value-cost indicators, that can be adapted to suit your organisations needs. Three important takeaways:

a) metrics should measure against the organisational mission and objectives

b) All employees should be aware of what is being measured and why

c) All employees should play a role in keeping track of metrics both implicitly and in reality

Please view the links for additional details, the first link is tied to strategic analysis of health services and the second is a tool for calculating HR performance ratios:

Daryn

https://leansixsigmahealthcare.wordpress.com/2012/12/19/the-value-of-key-performance-indicators-for-healthcare-providers/

http://www.shrm.org/templatestools/samples/metrics/pages/default.aspx

Current and future cost estimations by statistics, simulation etc...to learn the success of healthcare system.You can find few articles in my profile about that.

Maybe you can try this:

http://search.proquest.com/docview/229778217?pq-origsite=gscholar