1. Identify Activities: The first step is to identify all the activities involved in nursing care, such as patient assessment, medication administration, and documentation.
2. Assign Resources to Activities: Next, resources such as time, supplies, and equipment are assigned to these activities based on their consumption. For example, the time spent by a nurse on patient assessment or the cost of medical supplies used.
3. Calculate Activity Rates: The cost of each activity is then calculated by dividing the total resources assigned by the number of times the activity is performed.
4. Assign Costs to Patients: Finally, the calculated activity rates are used to assign costs to individual patients based on the specific activities performed for them.
