Cost Implications of Regionalizing Open Heart Surgery Units

This study calculated the potential change in costs from regionalizing open heart surgery units in a geographic network of the Department of Veterans Affairs (VA). It used data from the VA's cost accounting system, and the authors conducted a sensitivity analysis. Under consolidation, savings f...

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Bibliographic Details
Published in:Inquiry (Chicago) 1999-04, Vol.36 (1), p.57-67
Main Authors: Menke, Terri J., Wray, Nelda P.
Format: Article
Language:English
Subjects:
Accounting
Armed forces
Average cost
Cardiac Surgical Procedures - economics
Closing costs
Consolidation
Cost control
Cost effectiveness
Cost reduction
Cost Savings
Costs
Economies of scale
Emergencies - economics
Health Care Costs - statistics & numerical data
Health care delivery
Health care expenditures
Health care networks
Health Services Research
Heart surgery
Hospital beds
Hospital costs
Hospital units
Hospitals, Veterans
Hospitals, Veterans - economics
Hospitals, Veterans - organization & administration
Humans
Intensive care
Intensive Care Units - economics
Medical and sanitary affairs
Medical economics
Medical sector
Medical service
Medicine, Military
Patients
Program Evaluation
Regional Health Planning - economics
Regionalism
Savings
Sensitivity and Specificity
Statistical analysis
Studies
Surgery
Surgical intensive care units
Surgical specialties
Transportation of Patients - economics
Unit costs
United States
United States Department of Veterans Affairs
Veterans affairs department
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Description
Summary:This study calculated the potential change in costs from regionalizing open heart surgery units in a geographic network of the Department of Veterans Affairs (VA). It used data from the VA's cost accounting system, and the authors conducted a sensitivity analysis. Under consolidation, savings from closing an open heart surgery unit would be partially offset by the costs of treating nonemergency cases at other VAs, treating emergency cases at non-VA hospitals, and transporting patients to regionalized facilities. Nevertheless, the potential savings from consolidation would exceed $3 million, or 18% of the network's costs of treating open heart surgery patients.
ISSN:0046-9580
1945-7243