Overhead
Overhead (medicine)
Overhead (/ˈoʊvərhɛd/), in the context of medicine, refers to the indirect costs or ongoing business expenses not directly attributable to the production of medical services. These costs include administrative expenses, utilities, and other operational costs necessary to run a healthcare facility.
Etymology
The term "overhead" originates from the English language, where it was initially used to describe something physically located above the level of the head. In the late 19th century, it began to be used in a business context to refer to ongoing expenses not directly tied to the production of goods or services.
Related Terms
- Direct costs: These are costs that can be directly attributed to the production of specific medical services, such as salaries for healthcare providers and costs of medical supplies.
- Indirect costs: These are costs that are not directly tied to the production of medical services but are necessary for the overall operation of a healthcare facility. Overhead is a type of indirect cost.
- Fixed costs: These are costs that do not change with the level of output. They include rent, salaries, and insurance.
- Variable costs: These are costs that vary with the level of output. They include utilities and supplies.
See Also
External links
- Medical encyclopedia article on Overhead
- Wikipedia's article - Overhead
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