Audit of general practitioner referrals to a surgical assessment unit: new methods to improve the efficacy of the acute surgical service

A total of 653 referrals from general practitioners to an acute surgical service were audited prospectively over a period of 4 months. Middle-grade staff accepting these referrals were able to deal with 182 (27.9 per cent) of these cells without surgical admission. A further 189 (28.9 per cent) referrals were seen on a surgical assessment unit and were not admitted to a surgical ward. The resultant cost saving was approximately 10,000 pounds. This confirms that the ready provision of an experienced surgical opinion in combination with early assessment can reduce the number of unnecessary acute surgical admissions referred from general practitioners.

Capitation and orthopedic services

One method of regulating healthcare costs is through capitaiton--a per-member per-month reimbursement to the provider of services. While there are many different entities affected by the capitation process, this article focuses predominantly on the hospital side of the equation as it relates to the delivery of orthopedic services.

The training implications of day-case surgery

The marked increase in the use of day surgery has major implications for the provision of surgical training. It is essential that day surgery units be used effectively for surgical training. We identify current constraints on such training and suggest methods for improvement.

OxDONS syndrome: the inevitable disease of the NHS reforms

The financial demise of Oxford's department of neurosurgery (OxDONS) was precipitated by the financial rules of the reformed NHS. In particular it was produced by the failure of "resources to follow patients"; the requirement that "prices have to follow costs"; and the use of private income for revenue expenditure, not capital expenditure. This process will eventually affect all hospital departments, but it affected the unit in Oxford sooner as it started as "efficient"--that is, underresourced--and has depended on income from extracontractual referrals and private work. Current NHS accounting rules act as a disincentive to private income being generated in NHS hospitals, and consultants should be aware of this.

Reducing surgical length of stay: quantifying the impact

Length-of-stay (LOS) reduction is a strategy encouraged at all levels of health care to manage within a resource limited environment. However, few organizations have attempted to quantitatively understand the impact of reducing LOS. This study examines the relationship between reducing LOS and cost through a retrospective, medical records analysis of three surgical procedures (appendectomy, cholecystectomy and caesarean section) at an Ontario community hospital Department of Surgery. Hypotheses are presented and a methodology is described. The results are discussed with a focus on the factors that hospitals, administrators and physicians might consider in a LOS reduction program.

Restructuring of cardiovascular services at Children's Hospital, Boston, Massachusetts

BACKGROUND

In recent years there has been growing concern about the turbulence and many uncertainties in the health care environment. The leaders of the Cardiovascular Departments at Children's Hospital in Boston recognized the need to position themselves more effectively for providing quality cardiovascular services in the future.

METHODS

A transformational strategy for leadership and organization of cardiovascular services was designed by the physician and nursing leaders of the Cardiovascular Departments. The new Cardiovascular Program included changes in governance administration and clinical operations.

RESULTS

A Governance Board was appointed to oversee the fiscal and clinical affairs of the unified Cardiovascular Program. The operating budget was reduced by 10% (2.1 million dollars) over a 2-year period. This goal was achieved with creative restructuring in three areas: (1) personnel, (2) supplies, and (3) ancillary usage.

CONCLUSIONS

This organizational innovation is a model for collaborative practice. It is hoped that this new model will allow the faculty and staff to improve upon a tradition of excellence in clinical care and will help in retaining an environment and spirit conducive to the generation of new knowledge.

Alberta hospital tries to boost revenue by attracting gastroplasty patients from US

The fate of a surgical weight-reduction program at the 25-bed hospital in Cardston, Alta., is in limbo as Alberta's Conservative government decides whether it will allow the hospital to keep profits made by performing gastroplasty on American patients last year. Cardston Municipal Hospital, which has had more than 1200 Canadian banded-gastroplasty patients since 1979, began recruiting American patients from Montana and Idaho last year. However, rumours that the Klein government will reduce the regional health authority's operating budget by an amount equal to the hospital's profit have jeopardized the program's future. The hospital first marketed the program in the US to cushion short-falls in government funding.

Economic impact and clinical benefits of pharmacist involvement on surgical wards

A one-year pilot project was performed to assess the economic and clinical benefit of pharmacist involvement on the surgical wards of a 600-bed tertiary care, teaching hospital. A total of 405 recommendations were collected with a physician acceptance rate of 90%. From these recommendations, 1416 patient follow-ups were performed to document outcome. The total documented cost avoidance of the pharmacists' activities was $33,265.58. The total annual drug expenditure for the department of surgery declined by $59,662 representing a 9% decrease over the previous year with the greatest decline involving antimicrobials which decreased by $52,587 compared with the previous year. Most of the cost-avoidance in this area was attributable to antimicrobial selection and dosing adjustment in renal impairment. Pharmacist-directed pharmacokinetic monitoring of aminoglycosides resulted in a clinical success rate of 93.8% for treatment regimens and a 6.2% incidence of nephrotoxicity. Housestaff education aimed at improving prescribing practices were identified and provided for select agents including midazolam, ketorolac, vancomycin and aminoglycosides. As well, select recommendations were documented which illustrated the benefit to patient care of pharmacist involvement. Pharmacist involvement on the surgery services produced both financial and clinical benefits.

Cost-effectiveness in surgery. The insurers' point of view

Cost-effectiveness in surgery is only one example of a global health care policy by the Belgian social insurers aiming at optimal price-quality ratios for the offered care provision and within budgetary constraints. As a main partner in health care management the insurers' decision is guided by socio-economical evaluation of medical technology and care. This evaluation distinguishes respectively cost-benefit (CBA), cost-effectiveness (CEA) and cost-utility (CUA) analyses. In surgery the principles of cost-effective management are illustrated with examples for minor surgery in general practice, one day clinic, tympanostomy tube placement for recurrent otitis media, and laparoscopic vs. laparotomic cholecystectomy. Even if we need economic evaluation for policy making it can only be one instrument for making choices in the increasingly complex and expensive health care sector. To maintain the access, the quality and the actually fair cost-level in Belgium's compulsory health insurance system there is need for standardized indications, clinical guidelines, outcome evaluation and quality assurance by credentialing of providers and service centers.

Cardiac operations in patients aged 70 years and over: mortality, length of stay, and hospital charge

BACKGROUND

With emphasis today on cost containment in health care, the results and costs of cardiac operations in elderly patients are being scrutinized.

METHODS

Our computerized database was used to obtain the characteristics of patients undergoing cardiac operations from January 1990 to July 1994. A study group of 628 patients aged 70 years and over was identified, and comparisons were made between them and adult patients less than 70 years of age.

RESULTS

In the elderly group the 30-day mortality was 33 of 628 (5.3%), and the overall hospital mortality was 40 (6.4%). During this time the 30-day mortality for all adult patients less than 70 years old was 49 of 1787 (2.7%; p < 0.003) and the hospital mortality was 59 (3.3%; p < 0.001). The mean length of postoperative hospital stay (days +/- standard error) in all surviving patients aged 70 years and over was 11.6 +/- 0.4 days, compared with 8.5 +/- 0.2 days in patients less than 70 years old (p < 0.001). Over the time of the study the length of stay in patients less than 70 years old declined from 9.6 +/- 0.4 to 7.2 +/- 0.6 days, whereas it stayed the same for elderly patients. The 30-day mortality and length of stay increased with the risk category of the Parsonnet model. The mean hospital charge for patients aged 70 and over was 114% of that for younger patients.

CONCLUSIONS

Although mortality, length of stay, and hospital charge are increased in patients 70 years of age and over, they are not excessively so. The results support the continued performance of cardiac surgical procedures in select elderly patients.

The changing distribution of a major surgical procedure across hospitals: were supply shifts and disequilibrium important?

This paper describes and analyzes the changing distribution across hospitals in the U.S. of total hip replacement surgery (THR) for the period 1980-1987. THR is one of the most costly single procedures contributing to health care expenses. Also, the use of THR exhibits a particularly high degree of geographic variation. Recent research pointed to shifts in demand as one plausible economic explanation for increasing use of THR. This paper questions whether shifts in supply may have been large enough to explain changes in patient mix and the relationship of patient mix to the number of procedures performed at a particular hospital. In addition, the relationship between total use of THR and the local availability of orthopaedic surgeons as well as the average allowable Medicare fee for standardized physician services is analyzed. These relationships might yield evidence to support a scenario of induced demand beyond the optimum for patients' welfare, or evidence of supply increase within a disequilibrium scenario. This study, using data for all THR patients in a large sample of hospitals, tends to reject the formulation of a market with independent supply and demand shifts where the supply shifts were the dominant forces. Hospitals with a larger number of THRs performed did not see a higher percentage of older, sicker, and lower income patients. It was more likely that demand shifts generated increases in capacity for surgical services. Moreover, there was little evidence for a persistent disequilibrium and only weak evidence for inducement. Also, we found little evidence that hospitals responded to financial incentives inherent in the Medicare payment system after 1983 to select among THR candidates in favour of those with below average expected cost. We did observe increased concentration over time of THR procedures in facilities with high volume--suggesting plausible demand shifts towards hospitals with a priori quality and cost advantages or who obtained those advantages with a high volume of patients.

Accounting for the transition from inpatient to outpatient surgery

This article reports on some of the factors that have advanced and impeded hospital progress in moving from inpatient to outpatient surgery. Early on, patients, physicians, and hospital administrators all agreed that outpatient surgery had an intuitive appeal. Patients liked it because they didn't have to go in the hospital. Physicians liked it because they could get in and out of the outpatient surgery center more easily than the main hospital operating room. Administrators recognized the inherent appeal of outpatient procedures but were unable or unwilling to switch services from inpatient to outpatient for a variety of reasons. First, empty hospital beds and diminished scope of inpatient operations are a threat to the power of administrators. Moving surgery from inpatient to outpatient settings reduces inhouse operations. Second, reimbursement incentives were definitely in favor of continued inpatient care long after technology was in place for outpatient care. The third and most critical reason was that cost data on outpatient operations were just not available for making decisions on when to move into the outpatient setting. This review of the literature was intended to document the lack of relevant cost-based accounting. Instead, many other factors that more directly slowed progress were encountered. More than anything, this illustrates the erratic course of progress in health care reform.

Changing the admission process for elective surgery: an economic analysis

This study compared the costs of an inpatient elective surgical admission process with an outpatient based same day admission programme in patients undergoing laparoscopic cholecystectomy. The effect of this process change on annual surgical volume and case flow (number of procedures performed per surgical bed) in the year before the initiation of same-day method (1989/90) and subsequent to the widespread use of the process (1992/93), was also assessed. Costs incurred by 53 patients who underwent preoperative anaesthetic and surgical assessment as outpatients and were admitted as an outpatient on the day of surgery (SD Group) were compared with those incurred by 11 patients who entered hospital on the day before surgery and underwent anaesthetic and other assessments as inpatients (IP Group). Nursing, radiology, laboratory, operating room, rehabilitation and clinic costs were obtained for each patient. The remaining costs were not amenable to individual attribution and were assigned to each group as a percentage of the allocated costs. The cost per case in the SD Group was $360 less than in the IP Group, reflecting decreased nursing costs incurred by the SD Group. Between the period 1989/90 and 1992/93, the number of surgical beds declined 15.7%; however, surgical volume decreased by only 5.4%. Total case flow improved by 12.2%, that for elective and non-elective surgery increasing by 14.1% and 9.5%, respectively. Elective surgery, where same day admission was used, showed the greatest improvement in case flow. We conclude that a same day admission process reduces cost and serves to enhance hospital productivity.

ICU and non-ICU cost per day

The purpose of this study was to compare the cost of a day spent in an intensive care unit and a day spent on a general nursing unit. A descriptive design was used, based on patient level data, to examine and compare unit costs per day for each of the ICU and non-ICU portions of a patient's hospital stay. Records from 386 patients who were treated in a general medical/surgical ICU were analyzed. Records for patients who received both ICU and non-ICU care during their stay were retained. Patients were categorized according to whether they had received surgical care prior to admission to the ICU (surgical group) or had no surgical care (medical group). The groups were further divided, based on whether they were discharged from hospital (survivors), or died following transfers from the ICU (non-survivors). All four groups; surgical or medical, survivors and non-survivors, were analyzed separately. The ICU direct costs per day for survivors were between six and seven times those for non-ICU care. A one day substitution of general ward for ICU care would result in a cost reduction of $1,200 per patient for survivors. The results suggest that the savings achieved by moving a patient from ICU to non-ICU care are considerable, particularly for less severe surviving patients. In making such decisions, however, clinicians must examine prospective benefits as well as costs. If the health outcomes are not influenced, the savings from substitution are considerable, and there is a strong economic argument for substitution.

Maximizing service delivery: one OR's experience

Hospitals are being forced to make strategic downsizing decisions at a rapid rate. Surgical services are frequently targeted as much of the related activity is deemed to be controllable. However, strategies that only focus on bed and operating room reductions do not always achieve desired results. This article describes the experience of one community hospital in controlling surgical costs over a five-year period. The keys to its success include evaluating and monitoring the outcome of strategic decisions, identifying and integrating the systems that comprise the surgical process, and ensuring the involvement of users in developing and implementing change.

Cost-effective use of operating room supplies based on the REMEDY database of recovered unused materials

It is estimated that $200 million worth of prepared materials are discarded unused in operating rooms in the United States each year. Although some of these materials have been successfully recovered for overseas donation, they nevertheless constitute an undesirable burden on health care efficiency. This situation has prompted a reevaluation of the procedures that result in the overpreparation of surgical supplies, in the hope of reducing hospital, patient, and third-party payer expenditures. A database, which was initially developed to track the overseas donation of recovered supplies from Yale-New Haven Hospital, is now being applied to measure approaches to waste reduction. This report summarizes the application of this database to an integrated program designed to modify nursing procedures and physician prespecified supply lists.

Drug utilization review on a surgical intensive care unit

Drug use reviews (DUR) provide information about drug prescription patterns. At the surgical intensive care unit (SICU) of the University Hospital Frankfurt/Main we recorded the indication related administration of blood products and pharmaceuticals (which were responsible for 60% of the total costs at the SICU in the year before) over a 4-month investigation period. Data were recorded and analyzed using a notebook-PC. 207 Patients were included, and recorded total expenditures came to $551,592. The 10 leading substances, represented by antibiotics and blood-products, caused more than 70% of total costs. The usage of these high-cost substances and the most expensive complications are identified and discussed. We concluded that DURs are useful for obtaining information about drug usage patterns and for identifying high cost drugs, which are of economic interest. Furthermore, the indications for the application of these substances can be identified. Our results suggest, that blood and blood-products should always be included in DURs. In our opinion, especially the usage of blood-products represents a field where considerable cost savings may be expected. As certain complications during the postoperative course (e.g. sepsis) may increase costs, they should be considered in the reimbursement negotiations between hospitals and health insurance.

The clinical effects and cost-avoidance of a change in perioperative bronchodilator use

The clinical effects and financial impact of a change in prescribing habits from routine to occasional use of perioperative bronchodilators, following the presentation of drug information, were assessed retrospectively by comparing the outcomes of patients admitted for major thoracic surgery. Eighteen of 24 (75%) patients in Period A (prior to change) received salbutamol bronchodilator therapy versus 10 of 17 (59%) in Period B (following the change) (p = .448). Of the patients who did receive salbutamol aerosols, the mean dose in grams per patient was greater in Period A than in Period B (6.85 +/- 5.96 vs. 2.64 +/- 4.44 respectively p < 0.05). Two patients from Period A and one from Period B were receiving digoxin prior to admission. In the remaining patients, 5 of 22 (23%) in Period A and 1 of 16 (6%) in Period B developed atrial fibrillation requiring digoxin (p = .36). The proportion of patients with obstructive airways disease (OAD) who developed an arrhythmia was not different between the two groups. However, in those patients without OAD an arrhythmia was reported in 9 of 16 patients (56%) receiving salbutamol, versus only 1 of 11 (9%) of those not receiving it (p = 0.032). The number of days patients were hospitalized during Period A and Period B were 10.2 +/- 4.97 and 9.4 +/- 3.68 respectively (p = 0.85). A potential average cost-avoidance of $68.46 per patient could be realized with this new practice. We conclude that a change in prescribing habits had no adverse clinical outcome and resulted in a considerable cost-avoidance.

Conservation of blood in cardiac surgery

The rising costs of surgical care and decreasing third-party reimbursement mandate conservation of surgical resources and supplies whenever possible. One such resource is autologous blood. Its conservation has the added benefit of protecting the patient from the potential dangers of homologous blood and its products. This article presents conservation techniques found to be feasible in open-heart surgery.

Amputations in the surgical budget

AIM

To describe the extent and distribution of in patient costs of nontraumatic lower limb amputations and to identify areas of high cost as a basis for cost saving strategic planning.

METHODS

Retrospective review of 134 consecutive admissions resulting in lower limb amputations for reasons other than trauma over a 33 month period. General surgical and orthopaedic costs were compared. More detailed cost distribution analysis was then conducted for a group of general surgical amputees corroborating data from the resource utilisation system, Otago surgical audit and patient records.

RESULTS

The mean cost of admission for nontraumatic lower limb amputations performed by general surgeons was $11,342 (median $21,439 range $144-$43,022) and was significantly more expensive than orthopaedic amputations, mean $2318 (median $6277 range $307-$13,907) p < 0.001. Of general surgical patients, 38.7% had diabetes and these accounted for 36.1% of total costs. Most amputations (73.9%) in diabetics were of the minor type compared with 29.0% in the nondiabetic group (p < 0.001). Ward costs accounted for the largest proportion of total cost 55.6% (95% CI 45.1, 66.0). For major amputees 40% (95% CI 31.4, 48.1) of in-hospital time was used for rehabilitation.

CONCLUSION

Nontraumatic amputations are costly. Diabetics, having mainly minor amputations, account for a disproportionate amount of the cost. Length of hospital stay is the most important determinant of cost, much of which is spent on rehabilitation. A case is made for early definitive surgery and a greater use of community based services and low cost centres in rehabilitation.

Resource Implications of Head Injuries on an Acute Surgical Unit

Head injuries are expensive and demanding in terms of resources. In the UK, most are cared for outside neurosurgical centres. In the absence of specialist rehabilitation services, patients with on-going disability add to those admitted for observation and treatment on acute surgical wards. We audited the workload pattern and financial implications related to head injuries on a general surgical unit in a central London teaching hospital. Data collected prospectively at the time of admission and derived from departmental computerized information systems included clinical outcome, hospital stay and its relationship to severity of injury and other factors. Ward, departmental (accident and emergency (A & E), intensive therapy unit (ITU), radiology, and theatre) and neurosurgical referral costs were derived. Long-term social and rehabilitation costs were not calculated.

Over a 6 month period 899 patients with head injuries were treated in the A & E department, of whom 156 were admitted. Of the admitted patients 68% were classified as minor; 22% as moderate; and 10% as severe head injuries. Fifty-one per cent of adult admissions were intoxicated by alcohol. Prolonged hospital stay was related to age, severity of head injury, mechanism of injury, associated injuries and preexisting neuropsychiatric conditions (including alcoholism). Six patients died. The direct cost of these head injuries patients was estimated at £173 500, during which time they occupied 7.6% of our unit's adult inpatient capacity. Twenty-four hour observation of 76 patients with minor head injuries contributed £9700 (5.6%) to this figure. Associated extracranial injuries cost a further £46 500.

Head injuries are an important component of an acute unit's costs, particularly when the unit serves an inner city population where alcohol-related and neuropsychiatric problems are prevalent. In view of the financial implications involved, all hospitals whether directly managed or trusts will have to analyse their position in relation to local needs and available facilities.

Costing for quality--a case study

Discusses quality costing as part of an overall Total Quality Management (TQM) strategy and describes and analyses a practical quality costing exercise. Argues that quality costing exercises can provide considerable opportunity to be more efficient whilst enhancing the quality of patient care. Evaluates the benefits of the exercise and discusses its application to other areas.

The value of early discharge: dispelling some myths

Our objective in this paper is to assess the value of early discharge schemes following the economic evaluation of three such schemes in New South Wales, Australia. An early discharge programme for obstetric patients, a fractured hip management programme and a continuing community cancer care programme were evaluated. The results of the economic evaluation of these schemes are discussed in the light of four commonly held beliefs about the value of early discharge: that early discharge schemes succeed in reducing length of stay, that early discharge schemes save money, that the welfare of patients is not reduced by early discharge and that early discharge schemes are cost-effective. The caution expressed by previous authors about the perceived advantages of early discharge schemes is still warranted.

Developing actual costs of patient services: the University of Alberta Hospitals

Analysis of the costs of diagnostic and therapeutic services provided to patients yields a multitude of useful results: a sophisticated tool to assist in streamlining the underlying processes of patient care; an improved understanding of the nature and extent of case-based resource requirements; maximization of existing patient information collected through various feeder systems; a key step in the direction of measuring quality and the cost of quality, when linked to patient outcomes realization of the strategic significance of information management in today's complex, data-intensive health industry.

Funding in-hospital same-day surgery in Canada

The significant advantage of replacing global (i.e., cost-based) ambulatory funding with the same dollar value of case mix (i.e., input-based) ambulatory funding is that the fundamental basis for funding has been altered. First of all, it is widely believed that case mix-based funding establishes even more compelling incentives for hospitals to control resource utilization and costs without reducing service volumes than global systems. Case mix also represents a more precise policy instrument for ministries of health because incentives (e.g., different funding rates for various types of day surgery) can easily be incorporated to direct the composition of services rather than merely limit total hospital day surgery expenditures, as is currently done. Using the hybrid global/case mix day surgery funding system described above, funding policies can be designed to control both total cost and case mix composition while at the same time introducing incentives toward increasing ambulatory services. Although historical funding inequities remain unrectified, further inequities as ambulatory surgery volumes or case mixes change can be avoided.