The Role of Throughput Accounting in Rationalizing Health Service Costs

The companies regardless of their activity, seek to improve their performance level in line with the changes occurring in the labor market, in order to achieve the optimal use of resources and develop operational performance by rationalizing the time and cost of achievement to achieve efficiency in use. The research problem is represented in the following question: How does Throughput accounting contribute to rationalizing the costs of health services? The research aims to demonstrate the importance of Throughput accounting, which is one of the management accounting tools in providing an effective information system that provides the company's management with the information it needs to improve its production processes and increase productivity, thus maximizing its profits. The research reached a set of conclusions, the most important of which is that Throughput accounting provides a number of indicators such as (accomplishment margin, achievement rate, and achievement time) that help in measuring performance and identifying the problems facing the economic unit and ways to address them. Therefore, the research recommends that the hospital should apply Throughput accounting instead of the traditional system in order to provide measures and indicators that help increase profitability and focus on increasing the achievement margin and reducing operating costs to the lowest level.