Endovascular abdominal aortic aneurysm repair is more profitable than open repair based on contribution margin per day

Cost disparity between open repair and endovascular aneurysm repair for abdominal aortic aneurysm: a single-institute experience in Japan

“…In our study, the cost of the endografts comprises 66.9% of the total EVAR cost. Almost all studies conducted since 1999, when the US Food and Drug Administration approved commercially available stent grafts, have shown EVAR to be more costly, with endografts accounting for 47-85% of the total cost [18][19][20][21][22][23][24]. Moreover, the price of endografts has increased remarkably.…”

Relationship Between Occurrence of Surgical Complications and Hospital Finances

“…As long as it is positive and hospital and operating room capacity exists, a hospital is financially motivated to provide care, even if total margin is negative. 31 However, hospitals with negative total margins will ultimately go bankrupt. To calculate total margin, hospital managers must allocate a portion of fixed costs to each patient.…”

“…Hospital managers seeking to improve financial performance typically prioritize contribution margin when evaluating hospital activities. 31 For hospitals with substantial unused capacity, which comprises the majority of US hospitals, [40][41][42] any activity with a positive contribution margin is financially beneficial, regardless of total margin.…”

The Formation of Peer Reputation among Physicians and Its Effect on Technology Adoption

“…17 In contrast to physicians, there was considerable debate on the profitability of EVAR vs. open repair at the hospital level. When considering opportunity costs from increased volume, EVAR was suggested as more profitable than open repair (Rosenberg et al 2005). Hospitals did, however, need to institute catheterization labs in which surgeons could operate.…”