TY  - JOUR
T1  - Impact of Lean Accounting Information on the Financial performance of the
Healthcare Institutions: A Case Study
AU - Almusawi, Enaam AU - Almagtome, Akeel AU - Shaker, Ameer Saheb 
JO  - Journal of Engineering and Applied Sciences
VL  - 14
IS  - 2
SP  - 589
EP  - 599
PY  - 2019
DA  - 2001/08/19
SN  - 1816-949x
DO  - jeasci.2019.589.599
UR  - https://makhillpublications.co/view-article.php?doi=jeasci.2019.589.599
KW  - Lean accounting
KW  -value stream costing
KW  -financial performance
KW  -healthcare institutions
KW  -cost reduction
KW  -competitive advantage
AB  - This study examines the impact of lean accounting information on the financial performance of
healthcare institutions. Specifically, it analyzes the impact of value stream costing as a lean accounting tool in
improving the financial performance indicators of healthcare institutions based on a case study applied in a
private hospital. A quantitative case study approach is carried out to assess the financial performance measures
under the traditional costing system of the case hospital. The quantitative analysis is also used to identify how
the implementing of value stream costing in the case hospital affects the financial performance measures. The
findings show that implementing the value stream costing enables managers to distinguish between the value
added activities and non value added activities and consequently eliminating the waste and saving the
available resources for more effective using. Therefore, the healthcare managers can utilize the lean accounting
information to determine the real cost of their services and then improve the financial performance indicators.
The study also shows that the analysis of activities into value added and non value added activities allow the
managers to improve the competitive advantage by utilizing the cost reduction gained by value stream costing
to set a lower price for their services. This study fills up the gap in the literature on the financial performance
of healthcare institutions, since, there is a little literature discussing the relationship between value stream
costing and financial performance in the healthcare setting. It also provides the healthcare administrators the
necessary information to improve both of competitive advantage and financial performance by revealing the
real cost of the hospital’s services.
ER  -