Okuzeka
Healthcare Management vocabulary · Budgets and Finance

Operating costs

Meaning in healthcare management, with examples

nounCore term

In healthcare management, operating costs means: The everyday costs of running a hospital or service, such as salaries, medicines, supplies, energy and maintenance, not including large investments.

In Turkish: işletme giderleri, faaliyet giderleri, işletme maliyetleri

How it is used

Contrasted with capital costs. Staff costs are usually the largest part of a hospital's operating costs. Managers try to reduce, control or cover operating costs; 'running costs' is a common informal British alternative.

Example sentences

  1. Energy prices pushed our operating costs up by 12% this year.

  2. The new wing will need extra staff, so we must plan for higher operating costs, not just the construction.

Common collocations

  • reduce operating costs
  • cover operating costs
  • rising operating costs
  • annual operating costs
  • budgetA plan that sets out how much money a hospital or department expects to receive and spend over a period, usually a financial year.
  • capital expenditureMoney spent on buying, building or upgrading long-term assets, such as buildings, scanners or IT systems, rather than on daily running costs.
  • overheadRunning costs that support the whole organisation rather than one service, such as administration, IT, finance, buildings and utilities.
  • cost centerA department or unit, such as radiology or a ward, whose costs are recorded separately so that managers can see and control what it spends.

More terms: Budgets and Finance

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This page explains English vocabulary for learners. It is not medical advice.