Most businesses know the cost of everything that goes into a product, but medicine is different.
What’s the actual cost of an hour in the operating room?
The University of Utah Health Care is starting to get answers. Thanks to a major computer software project the hospital system is learning the true costs of their services.
The hospital has been able to calculate the cost per minute in the ER (82 cents), in the surgical ICU ($1.43) and in the operating room for orthopedic surgery ($12), as reported by the New York Times.
Combined with data on the cost of labor, supplies and labs, Utah Health Care has cut excess expenses and improved care, according to the health system.
The issue of rising costs has taken on more urgency as the Affordable Care Act moves away from fee-for-service medicine to a system where hospitals get one payment for the entire course of care.
That means hospitals could bear more of the cost of care for additional tests and procedures or if patients get readmitted.
Read more at NYTimes.com
Chivaroli and Associates Insurance Services is a full-service brokerage firm specializing in the custom-design and placement of insurance and alternative risk funding solutions for your healthcare organization.