Original Article

Cost Analysis of a University Hospital’s Adult Emergency Service

10.5152/jaem.2013.030

  • Suat Zengin
  • Remzi Güzel
  • Behçet Al
  • Şahin Kartal
  • Emine Sarcan
  • Cuma Yıldırım

Received Date: 29.01.2013 Accepted Date: 26.02.2013 Eurasian J Emerg Med 2013;12(2):71-75

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.

Keywords: Emergency department, cost, cost analysis