Factors affecting profitability for craniotomy.
OBJECTIVE
The authors studied factors influencing hospital profitability after craniotomy in patients who underwent craniotomy coded as diagnosis-related group (DRG) 1 (17 years of age with nontraumatic disease without complication) and who met their hospital's craniotomy pathway criteria and had a hospital length of stay 4 days or less during a 20-month period.


METHODS
Data in all patients meeting these criteria (76 cases) were collected and collated from various hospital databases. Twenty-one cases were profitable and 55 were not. Variables traditionally influencing cost of care, such as surgeon, procedure, length of operation, and pharmacy use had no significant effect on whether a patient was profitable. The most important influence on profitability was the individual payor. Cases in which care was reimbursed under the prospective payment system based on DRGs were nearly always profitable whereas those covered by per diem plans were nearly always nonprofitable.


CONCLUSIONS
1) Hospital information systems should be customized to deliver consolidated data for timely analysis of cost of care for individual patients. This information may be useful in negotiating profitable contracts. 2) A clinical pathway was successful in reducing the difference in cost of care between profitable and nonprofitable postcraniotomy cases. 3) In today's health care environment both cost containment and revenue assume importance in determining profitability.
Popp
A John
AJ
Division of Neurosurgery, Albany Medical College, New York 12208, USA. poppj@mail.amc.edu
Scrime
Todd
T
Cohen
Benjamin R
BR
Feustel
Paul J
PJ
Petronis
Karen
K
Habiniak
Sharon
S
Waldman
John B
JB
Vosburgh
Margaret M
MM
D000293:Adolescent; D016001:Confidence Intervals; D003365:Costs and Cost Analysis / Q000379:methods / Q000706:statistics & numerical data; D003399:Craniotomy / Q000191:economics* / Q000706:statistics & numerical data*; D016208:Databases, Factual; D006801:Humans; D016014:Linear Models; D016017:Odds Ratio; D018709:Statistics, Nonparametric