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Clinical costing is the discipline of calculating the true cost of delivering patient care by tracing people, time, consumables, equipment, rooms, and overheads. Done well, it produces trustworthy insights that support pricing, budgeting, service redesign, and value-based care.
This guide explains the essentials, clarifies DOH clinical costing expectations in Abu Dhabi, and shows how X-Opp Clinical Costing helps you build a program that clinicians trust and finance can reconcile.
Clinical costing gives leaders and care teams a shared, defensible view of cost so decisions improve at every level. With a reconciled model, you can see where money is actually spent—by service line, specialty, pathway, and patient—rather than relying on averages.
That evidence strengthens tariff setting and payer negotiations, sharpens performance improvement, and grounds strategic choices about what to scale, redesign, outsource, or consolidate.
Most importantly, linking costs with outcomes enables value-based healthcare: teams compare results achieved per currency unit and focus on improvements that matter for both patients and margins.
In Abu Dhabi's healthcare ecosystem, this is directly aligned with the value-based funding framework and the clinical costing standards and guidelines issued by the Abu Dhabi Department of Health (DOH).
Our clinical costing solution is specifically designed to meet the value-based funding framework and clinical costing standards established by the Abu Dhabi Department of Health, ensuring full compliance and optimal outcomes.
Before tooling and dashboards, align on fundamentals. These principles and processes are the foundation of clinical costing standards across Abu Dhabi and the UAE.
What you're costing (patient, encounter, procedure, pathway, service line)
Where costs are incurred (ICU, OR, radiology, pharmacy, clinics, admin)
Direct costs are cleanly traceable to a patient (implants, contrast media, logged clinician time); indirect costs are shared overheads (housekeeping, IT, HR) that require allocation
Measurable factors that explain consumption (OR minutes, scans, bed-days)
Describe the work performed, and the unit cost is the cost per activity unit (per nursing minute, per scan, per OR minute)
A PLICS (Patient-Level Information & Costing System) traces these activities and drivers to produce costs per patient
In Abu Dhabi, providers should plan upstream mapping for clinical cost data collection so that costing results against financial statements reconcile and the cost data to the Department can be submitted accurately.
Start from cost-center totals and allocate overheads to clinical areas, then to patients using volume drivers.
Define activities, measure volumes/resource use, compute unit costs, and multiply by each patient's activity counts.
Estimate capacity cost rates (cost/minute) and apply time equations that reflect complexity.
Directly trace what you can (implants, drugs, confirmed OR minutes) and use drivers for the rest.
Choose cost objects, define period, service lines, and accuracy targets
Build cost-center hierarchy, activity dictionary, overhead step-down order
Load GL, payroll, materials, extract encounters, fix coding gaps
Produce per-patient, per-encounter cost breakdowns by component
Building a robust clinical costing framework requires both defensible allocation drivers and a staged maturity model that aligns with clinical costing standards and value-based healthcare principles.
Confirmed OR minutes (not scheduled), with complexity adders
Patient-days by level (ICU/HDU/general)
Modality-specific units (CT scans, MRI scans, test counts)
E-rostering punches, time logs, or RVUs/time standards
Dispensed items at patient level; otherwise charge codes
Sq. meters (facilities), headcount (HR), tickets/incidents (IT), utility consumption
Step-down overheads plus patient-level tracing for big-ticket items such as OR minutes, implants, and high-cost drugs.
Incorporates activity dictionaries and capacity rates for nursing, imaging, and labs to improve allocation accuracy.
Leverages TDABC time equations, predictive fill for missing timestamps, benchmarking by surgeon/diagnosis, and linking to outcomes/PROMS—ideal when aligning to costing standards and value-based funding models.
By combining allocation drivers with progressive maturity levels, healthcare providers create defensible, scalable, and value-based costing systems. This approach ensures that patient-level data is accurate, benchmarking is meaningful, and clinical costing evolves in step with healthcare reforms and value-based funding requirements.
A strong governance framework is what transforms DOH clinical costing services from a one-off compliance exercise into a sustainable, value-driven capability.
Under the Abu Dhabi clinical costing guidelines, healthcare providers must ensure that every patient-level cost total reconciles to the general ledger (GL), with clearly documented exclusions and adjustments to guarantee transparency of healthcare costs.
Patient-level cost data must reconcile with the GL, including exclusions and adjustments.
Models, drivers, and dictionaries require version control to prevent drift and ensure consistent application.
Time assumptions and activity flows must be clinically validated to reflect real healthcare processes.
Every allocation rule, adjustment, and edit must be documented to maintain accountability.
Protected Health Information (PHI) should be managed with role-based access and minimum necessary fields.
Health information exchange interfaces must be secured to protect sensitive clinical data.
By embedding these practices, healthcare providers in Abu Dhabi can achieve complete Clinical Costing Services that go beyond compliance. With the guidance of health costing experts, organizations strengthen governance while aligning with DOH clinical costing standards and value-based frameworks.
Abu Dhabi's clinical costing standards are built to ensure meaningful cost data informs planning, procurement, and the value-based funding framework.
Clinical costing services provide the structure that makes patient-level costing possible. Patient-level costing involves tracing real resource use—staff time, consumables, and equipment—to each episode of care. This allows healthcare services to understand the true cost of treatment and link it with outcomes.
Implement DOH clinical cost data collection process
Align with DOH clinical costing framework
Meet DOH technical requirements for costing and compliance
Submit accurate data via designated platform
Whether you are a hospital or a network of healthcare facilities providing direct patient care across the UAE, these costing services provide the framework to meet compliance with DOH standards and to deliver accurate clinical costs at patient level.
A dedicated costing lead often guides the submission of cost data, helping providers align clinical and financial information. By doing so, healthcare providers strengthen healthcare finance, improve decision-making, and ensure that providers meet DOH standards.
X-Opp Clinical Costing turns your costing design into operational reality through unified data integration, hybrid costing engines, and comprehensive governance frameworks.
X-Opp Clinical Costing turns your costing design into operational reality by ingesting clinical, operational, and financial data through prebuilt connectors. It links EHR/EMR encounters, RIS/PACS and LIS results, pharmacy dispensations, and theatre logs with the general ledger, payroll/rostering, fixed-asset registers, and materials management.
At the core is a hybrid engine that blends direct tracing with Activity-Based Costing and Time-Driven ABC. High-value items—like implants, high-cost drugs, and confirmed OR minutes—are traced directly to patients.
Reconciliation guardrails ensure patient-level totals tie back to the GL, with explicit variance logs for any exclusions or timing differences. Every allocation rule, driver change, or dictionary update is versioned.
Clinician-friendly validation screens surface the assumptions that matter—nursing time, pathway steps, and activity flows—so care teams can confirm reality on the ground.
Out of the box, dashboards show service-line profitability, DRG/HRG cost-to-tariff variance, and pathway cost segmentation. Teams can drill to staff, drugs, devices, labs, imaging, theatres, wards, and overhead components to pinpoint improvement opportunities.
Exports feed enterprise BI tools and payer negotiations, while cost-to-outcome views illuminate value hotspots and outliers—supporting a costing framework that advances the purpose of clinical costing in value-based care.
Implementing clinical costing systems without expert support often leads to black-box outputs and weak adoption. A combined approach—specialized Clinical Costing Services plus configurable costing software—helps healthcare providers across the UAE and across Abu Dhabi build internal capability while meeting compliance with Abu Dhabi's submission requirements.
From appointing a clinical costing contact person to defining the platform to be used, a disciplined operating model keeps the costing process timely, reconcilable, and audit-ready.
Whether you are just beginning your costing journey or upgrading to the new Abu Dhabi clinical costing standard, the path is clear.
DOH clinical costing standards compliance
Reliable clinical cost data pipelines
Fit-for-purpose hybrid/TDABC
Reconcile rigorously and validate clinically
With X-Opp's unified connectors, hybrid engine, and submission-ready outputs, providers can operationalize dedicated clinical costing that meets DOH compliance, generates meaningful cost data, and advances patient care—today and as Abu Dhabi's healthcare ecosystem moves deeper into a value-based funding framework.
Track your submission progress in real-time and ensure you meet all DOH requirements with our automated compliance monitoring system.
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Automate tedious processes and focus on patient care
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