How do direct costs differ from indirect costs in healthcare operations?

Direct costs are those expenses that can be directly attributed to specific patient care activities or services. This includes costs like hospital supplies, medications, and labor costs for healthcare providers who deliver care directly to patients. Indirect costs, on the other hand, are not directly linked to individual patient care but support the overall operation of the healthcare facility. These include overhead costs such as utilities, administrative salaries, and facility maintenance.

This distinction is crucial in healthcare operations management, as it helps organizations in budgeting and financial planning. By understanding what constitutes direct and indirect costs, healthcare administrators can better allocate resources, control spending, and assess the overall efficiency of services provided. The other options incorrectly categorize direct and indirect costs in ways that do not accurately reflect their definitions, making them less relevant to understanding the financial aspects of healthcare operations.