Title: A minimal cost analysis model for utilisation and capacity planning in surgical services

Authors: William E. Spangler, David P. Strum, Luis G. Vargas, Jerrold H. May

Addresses: College of Business and Economics, West Virginia University, Morgantown, WV 26506, USA. Anesthesiology Department, University of Arkansas Medical Center, Little Rock, Arkansas 72205, USA. Katz Graduate School of Business, University of Pittsburgh, Pittsburgh, PA 15260, USA. Katz Graduate School of Business, University of Pittsburgh, Pittsburgh, PA 15260, USA

Abstract: This chapter explores cost reduction and capacity planning in surgical services. Classical operating suite (OR) utilisation is defined as the ratio of total OR time used to total OR time budgeted, but that definition of utilisation allows scheduling inefficiencies and costs to go undetected. Instead, a more accurate description of the overall use of resources can be achieved by dividing classical utilisation into under-utilisation and over-utilisation, and incorporating those measures within a minimal cost analysis model. The model, which was developed from a study of surgical case records collected over six years, indicates that the potential cost savings are significant.

Keywords: surgical services; capacity planning; scheduling; utilisation; cost analysis.

DOI: 10.1504/IJHTM.2000.001086

International Journal of Healthcare Technology and Management, 2000 Vol.2 No.1/2/3/4, pp.56-70

Published online: 30 Jun 2003 *

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