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Time-driven activity-based costing may offer better cost estimates for ankle fracture treatment
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Time-driven activity-based costing may offer a better cost estimation of resources needed to treat patients with ankle fractures compared with traditional cost accounting, according to recently published results.
Researchers identified 35 patients who were treated for ankle fractures at a level 1 trauma center. Repeated observations were used to determine time for each phase of care. Time-driven activity-based costing was compared with the traditional cost accounting method, which measures the true cost expenditure. At this institution, the traditional cost accounting method used all hospital costs and allocated these to surgeries with a relative value method.
Results showed the time between injury to surgery was approximately 10 days. The operative time was approximately 86 minutes, with a post-anesthesia care unit time of approximately 87 minutes. Investigators noted the secondary recovery time was approximately 100 minutes.
The average cost with the time-driven activity-based costing method was significantly lower compared with the traditional costing method ($2,792 vs. $5,7682). Implant cost was not significantly different between the traditional cost accounting and the time-driven activity-based, costing $882 vs. $957, respectively. The traditional costing method yielded significantly greater costs in every other category, investigators noted. – by Monica Jaramillo
Disclosures: The authors report no relevant financial disclosures.
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