Reference no: EM132560861

Many hospitals use square footage to allocate housekeeping costs. The rationale, of course, is that one patient services department that is twice as big as another will require twice the expenditure of housekeeping resources. The advantage of this cost driver is that it is easy to measure and typically remains constant for a relatively long period (department space allotments do not change very often).

The disadvantage of using square footage as the cost driver is that some patient services departments require more housekeeping support per square foot of occupied space because of the nature of the service that the department provides. For example, emergency departments require more intense housekeeping services than do neonatal care units, and surgical suites require more intense services than do routine care departments.

Question 1: What do you think? Is a more effective cost driver available for allocating housekeeping costs than square footage? If so, what is it? Describe how the suggested cost driver might work.