Time-driven activity-based costing: A dynamic value assessment model in pediatric appendicitis.

Abstract:

OBJECTIVES:Healthcare reform policies are emphasizing value-based healthcare delivery. We hypothesize that time-driven activity-based costing (TDABC) can be used to appraise healthcare interventions in pediatric appendicitis. METHODS:Triage-based standing delegation orders, surgical advanced practice providers, and a same-day discharge protocol were implemented to target deficiencies identified in our initial TDABC model. Post-intervention process maps for a hospital episode were created using electronic time stamp data for simple appendicitis cases during February to March 2016. Total personnel and consumable costs were determined using TDABC methodology. RESULTS:The post-intervention TDABC model featured 6 phases of care, 33 processes, and 19 personnel types. Our interventions reduced duration and costs in the emergency department (-41min, -$23) and pre-operative floor (-57min, -$18). While post-anesthesia care unit duration and costs increased (+224min, +$41), the same-day discharge protocol eliminated post-operative floor costs (-$306). Our model incorporating all three interventions reduced total direct costs by 11% ($2753.39 to $2447.68) and duration of hospitalization by 51% (1984min to 966min). CONCLUSION:Time-driven activity-based costing can dynamically model changes in our healthcare delivery as a result of process improvement interventions. It is an effective tool to continuously assess the impact of these interventions on the value of appendicitis care. LEVEL OF EVIDENCE:II, Type of study: Economic Analysis.

journal_name

J Pediatr Surg

authors

Yu YR,Abbas PI,Smith CM,Carberry KE,Ren H,Patel B,Nuchtern JG,Lopez ME

doi

10.1016/j.jpedsurg.2017.03.032

subject

Has Abstract

pub_date

2017-06-01 00:00:00

pages

1045-1049

issue

6

eissn

0022-3468

issn

1531-5037

pii

S0022-3468(17)30181-1

journal_volume

52

pub_type

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