Comparison of the Ministry of Health’s tariffs with the cost of radiology services using the activity-based costing method

Kalhor, Rohollah; Amini, Saeed; Emami, Majid; Kakasoltani, Keivan; Rhamani, Nasim; Kalhor, Leila

doi:10.19082/2018

Cited by 10 publications

(7 citation statements)

References 7 publications

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“…Jennetti et al showed that the actual cost of eye surgeries exceeded its approved tariffs and the hospital incurred a loss of 551,000 USD per year (17). In addition, in the study of Kalhor et al, the average cost of 66 radiological services was higher than their tariff (18).…”

Section: Discussionmentioning

confidence: 99%

Does the approved tariff cover the actual cost of global surgical procedures?

Zarei

Hashemi

Daneshkohan

et al. 2020

Preprint

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Background: Following the implementation of the health transformation plan in Iran and the significant increase in medical tariffs, it seems there is still a considerable gap between the actual cost of the Global Surgical procedures (GSPs) and the approved tariffs. The aim of this study was to compare the actual costs of GSPs with approved tariffs in hospitals affiliated to Qazvin University of Medical Sciences in 2016. Methods: In this cross-sectional study, data of 6,126 GSPs performed in three hospitals were extracted from Hospital Information System and approved tariffs were also obtained from the Supreme Council of Health Insurance. The difference between the average actual costs of a GSP and its tariff was considered as the tariff-actual cost gap. Regression test was used to determine the factors affecting the tariff-actual cost gap using SPSS.21. Results: The average actual cost of GPSs was 503 USD while the average tariff was 361 USD, indicating a significant negative gap between the approved tariffs and the actual cost of GPSs. In fact, for each procedure, the hospital suffered an average of 142 USD losses. In 54 of 63 GSPs, the average actual cost was 0.3% to 307.4% higher than the tariff. The highest negative gap was related to the “femoral fracture fixation" with -307.4%. The gap was higher in older patients, females, and patients with a longer stay, orthopedic specialty, and full-time surgeons (p<0.05). Conclusions: The findings of this study showed that tariffs covered only 71.8% of actual costs. It is suggested that in the tariff setting of GSPs, factors such as inflation rate, patient's age, comorbidity, disease severity, and hospital function (teaching or referral center) be considered. In addition, hospital management can also reduce the gap by modifying processes and managing resource consumption, especially medicines and consumables items.

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Section: Discussionmentioning

confidence: 99%

Does the approved tariff cover the actual cost of global surgical procedures?

Zarei

Hashemi

Daneshkohan

et al. 2020

Preprint

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“…In addition to innovation and advanced technology in the modern era, the globalization of products and services has resulted in competitive business environments, requiring data to accurately identify the costs and organizational performance (1). This issue potentially forces health managers and planners to contemplate new approaches to the reduction of waste costs and using the available resources more efficiently (2). Cost analysis is an economical approach to decision-making , as well as an efficient structure to help managers perform better planning in competitive business environments (3).…”

Section: Introductionmentioning

confidence: 99%

The Calculation of the Costs of CT-scan Services at Shahid Rajaei Hospital in Qazvin, Iran Using the ABC Model and Comparison with the Tariff of the Iranian Ministry of Health

Kalhor

Norouzi

Kiaei

et al. 2020

Int J Health Life Sci

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Background: Cost analysis is an effective approach for planners and health system managers to address the issues regarding the increased shortage of resources. Activity-based costing (ABC) is a new system with various applications in daily service activities, the use of which is expanding for the estimation of real costs. Objectives: The present study aimed to calculate the total costs of CT-scan services in Shahid Rajaei Hospital of Qazvin, Iran using the ABC model and compared the results with the tariffs approved in 2016. Methods: This descriptive, applied research was conducted retrospectively. The total costs of CT-scan services were calculated using the ABC model and compared with the tariffs approved in 2016. Data were collected using checklists based on the hospital information system, observations, and interviews. Data analysis was performed in SPSS version 23 and Microsoft Excel software using the non-parametric Wilcoxon test. Results: The total costs of the CT-scan unit in the given year (2016 - 2017) was estimated at 398,380.07 dollars, with the largest share of the total costs in the human resources (57.9%), consumed materials (23.4%), and overhead (18.7%), respectively. No significant difference was observed between the total costs based on the ABC system and tariffs of these services. Conclusions: According to the results, the lack of a difference between the total costs and government tariffs suggested that earnings should be higher than the costs of these services, and these units could become profitable through proper cost control measures.

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“…Despite the significant role of the private sector in financing and providing dental services, as well as the increasing costs of services, the pricing of services in this sector has not been examined and the factors affecting the pricing of services in the private sector have not been investigated. Many studies have been conducted in the field of tariff and health services in Iran, but the focus of these studies has been mainly on areas such as medical treatments and hospital services (9,10).…”

Section: Introductionmentioning

confidence: 99%

Factors Affecting Fee-Setting for Dental Services in Iran’s Private Sector: Dentists’ Perspective

et al. 2018

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Background and Objectives: In Iran, the private dental sector is the main provider of dental services, however, the price of services that are charged by them is unclear. This study aimed at evaluating the factors affecting fee-setting for dental services delivered by dentists in the private sector and the relative value of services. Methods: In this cross-sectional study, the census sampling method was used among dentists working in the private sector of Kerman city, Iran. The data were collected through a researcher-made questionnaire, the validity and reliability of which were established. Descriptive statistics and Pearson's correlation coefficient were used to analyze the data. Results: Of the 252 qualified dentists, 147 (58%) participated in this study, of whom 61.5% stated they had reduced their prices to attract more patients and 67.4% mentioned that there is a competition between dentists in attracting more patients. The tariffs applied by the dentists were within the range of government approved tariffs. After the dentist's wage (42.3%), the most important factors that affected tariff setting included office rent (18.6%), raw materials (15.2%) and staff's salary (12.6%). Disease severity, dentistry error, dentist's skill and visit time length should be considered in determining the relative value of services and setting a justified and fair tariff. Conclusions: It is necessary to take appropriate measures by dental health authorities to increase the competition between private dentists in order to decrease prices in favor of patients. Also, due to differences in performance, experience and materials used by dentists and other factors, it is necessary to set maximum and minimum values for tariffs.

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Comparison of the Ministry of Health’s tariffs with the cost of radiology services using the activity-based costing method

Cited by 10 publications

References 7 publications

Does the approved tariff cover the actual cost of global surgical procedures?

Does the approved tariff cover the actual cost of global surgical procedures?

The Calculation of the Costs of CT-scan Services at Shahid Rajaei Hospital in Qazvin, Iran Using the ABC Model and Comparison with the Tariff of the Iranian Ministry of Health

Factors Affecting Fee-Setting for Dental Services in Iran’s Private Sector: Dentists’ Perspective

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