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Politics : A US National Health Care System?
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To: Lane3 who wrote (7370)7/6/2009 9:00:46 PM
From: i-node  Read Replies (1) of 42652
 
>> Of for Army procurement. Admin cost per case or per client makes no sense as a metric nor does admin cost per piece of equipment purchased.

One of the requirements for using a "cost per case" or "cost per client" metric is that there be a meaningful consistency from one to the next. I doubt one can say that about most law offices; i.e., a big case has a lot more administrative cost than fighting a speeding ticket. So, it really doesn't make sense in that context.

But in the case of an insurance company with a large number of insureds, I would think the overhead cost per insured is a pretty meaningful thing.

These are the basic concepts behind all cost accounting, really.
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