Cost analysis in interventional radiology--A tool to optimize management costs.
OBJECTIVE
The objective of the study was to analyze the methods to reduce cost in interventional radiology departments by reorganizing procurement.


METHODS
All products used in the Department of Interventional Radiology were inventoried. An ABC-analysis was completed and A-products (high-value and high turnover products) underwent a XYZ-analysis which predicted demand on the basis of ordering frequency. Then criteria for a procurement strategy for the different material categories were fixed. The net working capital (NWC) was calculated using an interest rate of 8%/year.


RESULTS
Total annual material turnover was 353,000 euro. The value of all A-products determined by the inventory was 260,000 euro. Changes in the A-product procurement strategy tapped a cost reduction potential of 14,500/year euro. The resulting total saving was 17,200 euro. Improved stores management added another 37,500 euro. The total cost cut of 52,000 euro is equivalent to 14.7% of annual expenses.


CONCLUSIONS
A flexible procurement strategy helps to reduce the storage and capital tie-up costs of A-products in interventional radiology without affecting the quality of service provided to patients.
Clevert
D-A
DA
Institute of Clinical Radiology, University of Munich-Grosshadern Campus, Munich, Germany. Clevert@web.de
Stickel
M
M
Jung
E M
EM
Reiser
M
M
Rupp
N
N
D003363:Cost Control / Q000191:economics* / Q000379:methods*; D017046:Cost Savings; D003362:Cost-Benefit Analysis; D003365:Costs and Cost Analysis / Q000191:economics / Q000379:methods; D003660:Decision Support Systems, Management; D005858:Germany; D008421:Materials Management, Hospital / Q000191:economics*; D017059:Models, Econometric; D011682:Purchasing, Hospital / Q000191:economics*; D015642:Radiology, Interventional / Q000191:economics*