Paper Title
MODELLING OPTIMAL HEALTH SERVICES SUPPLY CHAIN COSTING FOR OPTIMAL PRICING, COST MANAGEMENT AND CONTROL: LESSONS FROM BIG4 HOSPITALS IN TANZANIA

Abstract
Abstract - This study seeks to understand how the health service supply chain can be optimally costed and priced. It uses data on outpatient consultation (OPC) and total abdominal hysterectomy (TAH) medical care procedures collected from four big (Big4) hospitals in Tanzania. Dataanalysis was carried out using Time driven Activity based Costing (TDABC) Model. Research findings reveal that there mainly twelvenecessary resource pools consumed in proportions by different activities performed per one complete medical care procedure or service per patient. Findings also reveal that human resource accounts for the highest proportion of cost followed by medical consumables. The two-combined accounting for 80% to 90% of total cost medical care per patient. Findings reveal further that there is no cost recovery for OPC and TAH across the Big4. This suggests further that there is no optimal costing of health services across the studied hospitals. Generally, findings of this study imply that optimal costing of health services supply chain is i-mperative if cost efficiency and right pricing are to be realised, so is the sustainability of medical care services delivery and profitability thereto. Findings also imply that, more of the health services supply chain profitability can be generated and sustained if cost management and control efforts are largely directed towards human resources and medical consumable costs. At the same time, however, cost management and control over human and medical consumables resource pools need be done without compromising the quality level necessary for effective and efficiency provision of medical care services. Keywords - Health Service, Optimal Costing, TDABC Model, Tanzania.