Health care cost analysis is the detailed discussion manifested in written about the convalescent standards and approaches that a particular health care system embraces for its patients distinguishably. It generates an economic understanding of the methods and tools deployed in treating people. Thus the journey from budget to operating costs is tracked down cohesively in cogent manner.
Sample Health Care Cost Analysis
Name of the healthcare institution: Heart to Heart
Date of foundation: 8th July, 2000
Location: 8, Hudson Street, New York, US
Date of analysis: 4th January, 2011
Presenter of analysis: Steve Smith, Consultant
Main objective: To develop a rational analysis of the costs encumbered in the system so that it can be used as a model and the information can be used for estimating the economic correlates.
Ultimate motive: The analysis, if established with consistency, would spark off resourceful ideas with the help of which services can be optimized and efficiency can be increased subsequently.
Analysis of Economic Involvements:
1. Capital cost: The medical instruments, furniture and machines were bought for a capital amount of 5,00,0000 dollars with a prolific lifespan of 10 years. The condition of the items have deteriorated over the years and needs to be replaced by 2012 for an annual depreciation value of 5,00,00 dollars.
[The inventory of the items and their replacement costs has been provided]
2. Cost comparison: The gulf in normative and actual costs can be slowly perceived by the hospital financers as there is a whopping difference of 2,00,000 dollars between the two. This aspect needs revision and change in staffing or maintenance costs.