title: Comparison of institutional costs for laparoscopic preperitoneal inguinal hernia versus open repair and its reimbursement in an ambulatory surgery center.
abstract: OBJECTIVE
  To compare institutional costs for open versus laparoscopic inguinal hernia repair and its relationship to reimbursement in an ambulatory surgery center in the United States.
  
  
  METHODS
  Analysis of institutional costs in US$ of 2006 for all nonreusables used in a laparoscopic total extraperitoneal (TEP) hernia repair using a polyester mesh compared with open hernia repair using polypropylene mesh. A comparison of the institution's disposable costs related to reimbursement at an ambulatory surgery center in Southeastern United States was performed to identify the most cost-effective procedure for the outpatient facility.
  
  
  RESULTS
  As fixed and indirect costs of the ambulatory surgery center are similar for both procedures, a cost difference can only be found in direct disposable costs with that being US$ 235.57 for the procedure-specific disposables in the laparoscopic hernia repair as compared with US$ 117.15 for the open hernia repair. Cost for identical disposables used in both procedures amounted to US$ 32.57. Laparoscopic TEP hernia repair has a higher cost for procedure related disposables versus the open hernia repair at +US$ 118.42 mainly being due to the more costly polyester mesh. A flat rate reimbursement of US$ 1800 for a laparoscopic procedure compared with only US$ 950 for the open procedure minus all disposable cost results in a higher institutional income of +US&$ 731.58 (US$ 1531.86 vs. US$ 800.28), from which other institutional costs can be paid.
  
  
  CONCLUSIONS
  Despite marginally higher procedure-related disposable costs for laparoscopic TEP hernia repair, the institutional income is remarkably higher owing to a better reimbursement for this procedure in ambulatory surgery centers. From the institution's point of view, laparoscopic hernia repair is by far the more cost-effective procedure when compared with an open hernia procedure at the present time.
authors.affiliation: Department of Surgery, Fayette Medical Center (FMC), Fayette, AL, USA. volkerjacobs@hotmail.com
authors.forename: Volker R
authors.initials: VR
authors.lastname: Jacobs
authors.forename: John E
authors.initials: JE
authors.lastname: Morrison
mesh_terms: D000556:Ambulatory Surgical Procedures / Q000191:economics*; D003362:Cost-Benefit Analysis; D017048:Health Care Costs; D006552:Hernia, Inguinal / Q000601:surgery*; D006801:Humans; D007349:Insurance, Health, Reimbursement / Q000191:economics*; D010535:Laparoscopy / Q000191:economics* / Q000379:methods*; D015144:Southeastern United States