Using downstream revenue in a performance measurement system

• 成果类型: Article
• 署名作者: Petersen, Michael J.
• 署名单位: Arizona State University; Arizona State University-Tempe
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1506/car.24.4.6
• 发表日期: 2007
• 页码: 1193-+
• 关键词: aggregation; clinics

摘要

Using data from a health-care setting that employs outreach clinics to generate revenue at the system hospital, I analyze the properties of downstream revenue (defined as revenue that arises from further servicing and supplying the customer after the initial sale) for use as a performance measure. I find the measure to be congruent because the magnitude of the downstream revenue is substantial. The measure also is sensitive to managerial actions because choices such as location and specialty affect the magnitude and timing of subsequent revenue. However, the measure has low precision. The measure is noisy because there is a nontrivial lag in realizing the downstream revenue, and the downstream revenue is obtained in many departments at the parent hospital. Moreover, both the lag and the spread of revenue among departments vary by specialty. Thus, while potentially useful, firms must overcome significant measurement issues when attempting to use a measure of downstream revenue as a performance indicator.