Time-driven Activity-based Costing (TDABC) in an Endoscopy Department of a private hospital

Abstract

Context: Value-based health management (VBHC) has been the strategy of several health institutions around the world, as a way to improve the quality of services delivered in a sustainable way. Measuring health outcomes and costs is critical to maintaining the VBHC and is an essential step in its implementation. Objective: The objective of this case study is to portray the application of the TDABC method in an outpatient endoscopy procedure with colonoscopy in a private hospital in southern Brazil. Methods: This study applied the Time-driven Activity-based Costing (TDABC) method as a microcosting technique in a Brazilian supplementary health center to assess the cost of procedures performed in endoscopy. The costs and times of the procedures were descriptively analyzed and the resources and activities of greater financial representation were identified. Finally, a comparison was made between the measured cost and the reimbursement rate of the procedures. Results: The cost per procedure calculated using the method is R$ 684.77, and its average reimbursement value is R$ 993.91, proving to be profitable for the institution. Conclusions: The application of TDABC generated a better understanding of all the costs involved in the procedure and represents the first step towards disseminating the method to other hospital processes and departments.