The process of estimating the cost of surgery: Providing a practical framework for surgeons

Abstract

Over the last decades, health care costs have been increasing at an alarming, exponential rate which is considered unsustainable. Surgical care utilizes one-third of health care costs. Estimating, evaluating, and understanding the cost of surgery is a vital step towards cost management and reduction. Current cost estimation studies and costeffectiveness studies have vast disparities in their methodology, with published costs of Operating Room varying from as low as $7 and as high as $113 per minute. Costs in surgery are distinguished as direct and indirect. Allocation of direct costs involves identification, measurement, and valuation processes. Allocation of indirect costs involves the allocation of capital and overhead costs and of indirect department costs. Annualised capital costs and overhead hospital costs are then allocated to surgery by either the costcentre allocation or the activity-based allocation frameworks. Indirect department costs are allocated to a specific surgery by weighted service allocation or hourly rate allocation or inpatient day allocation, or marginal markup allocation. The growing societal, financial and political pressure for cost reduction has brought cost analysis to the forefront of healthcare discussions. Thus, we believe that almost every single surgeon will eventually enter the field of healthcare economics by necessity. This review aims to provide surgeons with a practical framework for engaging in cost estimation studies.

The unmet surgical needs of global refugee populations: A perspective review

“…2 Financial constraints, both from the health system and the refugee populations Access to healthcare poses significant financial challenges in many regions worldwide, with operating theatre expenses ranging from $7 to $113 hourly. 46 The majority of refugees and asylum seekers are unable to afford complex surgical procedures and post-operative treatment due to the healthcare system's budgetary constraints, which also impede the provision of essential medical supplies and equipment. Financial constraints in the healthcare systems of the host nations additionally limit the availability of discounts and subsidies for populations of refugees and prohibit timely access to surgical operations (Figure 3).…”

Cost‐effectiveness of the ADVISE trial: An intraoperative OCT protocol in DMEK surgery

“…UZL units are calculated to reflect Dutch societal prices. The average price of the UMCU and MUMC+ is in line with the mean costs of other regions and hospitals in Europe, the UK and the USA, according to present literature (Abbott et al, 2011;Childers & Maggard-Gibbons, 2018;Christou et al, 2022;Macario, 2010). Surgery times are derived from the ADVISE trial database.…”

Leveraging machine learning and prescriptive analytics to improve operating room throughput

“…Expenses can be associated with any of these phases of surgery, which opens up opportunities for cost reduction ( 20 ). One way to achieve this is by diminishing the necessary resources through the implementation of self-management application ( 21 ).…”