Cost Analysis of a University Hospital's Adult Emergency Service

Zengin, Suat; Güzel, Remzi; Al, Behçet; Kartal, Şahin; Sarcan, Emine; Yıldırım, Cuma
June 2013
Journal of Academic Emergency Medicine / Akademik Acil Tip Olgu ;Jun2013, Vol. 12 Issue 2, p71
Academic Journal
Objective: In this study we aimed to calculate the cost per patient in an emergency department by using the administrative, financial and medical data obtained from a university hospital in 2011. Material and Methods: All services invoiced as well as all revenue and expenditure documented by an Adult Emergency Service between 1 January 2011 and 31 December 2011 were retrospectively examined by analysing the data obtained from the Hospital Information System and Revolving Fund Management. Cost per patient was calculated accordingly with a traditional cost analysis method. Results: It was calculated that the total expenditure of the Adult Emergency Service, including personnel salaries, was $2,236,909.28. Total revenue was $2,045,861.78, meaning that there was a loss of $191,047.49. Since the personnel salaries were paid from a central budget, a profit of $224,252.84 was revealed in a cost analysis from which these salaries were excluded. Personnel salaries constituted 46.15% of the total costs, and it was calculated that the average cost per patient that the social security agency paid to the hospital was $27.48. Cost per patient was $30.05 if the salaries of emergency service personnel were included and $24.47 if these salaries were excluded. Conclusion: Public hospitals are non-profit healthcare organisations; however they are also enterprises and should be considered accordingly. To achieve high-quality, uninterrupted services, the revenue/expenditure balance should show a profit, and in order to make a profit hospitals, and departments within hospitals, should conduct regular cost analyses.


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