Cost
Effectiveness:
Nursing
Perspective
Leadership Series: Part 2
Sunday 21/06/2020
Define the cost
Discuss the types of nursing costs
Define cost effectiveness and cost efficiency
OBJECTIVES Define the stages of cost effectiveness
Discuss the approaches to control health care cost
Define costing out nursing services
Draw the strategies used to manage nursing services more productively
Explain the implication of cost effectiveness and efficiency in nursing service
administration
INTRODUCTION
New
technologies in
the care
Domaine
Growing of The
cost of health
care delivery at
an outstanding
rate
Financial
pressure on
hospital
services
specially
nursing services
Need to develop
creative
approaches to
contain this cost
COST DEFINITION
Money expended
for all resources
Supplies Personnel
Equipment
COST THEORIES
Demand-Pull Theory
• Increases in the cost of health care occurs from excess
demand and insufficient supply of goods services to
accommodate the demand
Cost-Push theory
• Higher prices result from the rising costs within the
health care business
COST EFFECTIVENESS DEFINITION
Is the extent
to which an
organization
Which are concrete and
or program
measurable
produces
particular
outputs
Which may not
Or outcomes
measurable
The
effectiveness The reduction of the cost
is primarily should not induce
relates to reduction of the quality of
quality of the care
outcomes
THE COST EFFECIENCY
The extent to which an
organization maintains the
level of production with fewer
resources
Or the increase of the level of
services with a less than
proportionate increase in the
resources used
It measures whether
healthcare resources are
being used to get the best
value for money
COST EFFECIENCY IS CONCERNED BETWEEN
Inputs :Costs in the
form of labor ,
equipment, all
resources
Outputs : numbers
treated , waiting time
Outcomes : lives
saved , life years
gained etc…
Go
Ob sho als an
are ject uld d id
def ives be eas
ine cle
d ar
Cha
be nge
eva sho
lua uld
ted
Rec
be ords
ava sh
ilab oul
le d
Com
Dis cou pete
EFFECIENCY PRINCIPLES
cip ess nsel nt
and lin ent is
r ul e s ial
es
enf
orc Equ
em al
on ent
all
Sta
nd
sch ardiz
edu ed
les
STAGES OF COST EFFECTIVENESS
Cost Cost Cost Cost avoidance Cost incentives
awareness monitoring management
• Employee • How much • Conceptual • Most • Motivate
attention on will be spent and expensive cost
costs , where physicals and less containment
,when and acts to limit effective
why unnecessary items
spent avoided
The management decide to give Ms. Sana decide to include a
bonus of 300 dollars to the MS lecture about the cost of normal
department after decrease of the patient stay in her training plan
consumables cost during June
2020
EXERCICE 1
The supply chain department
The management recruit Mr. send an evaluation form for a new
Omaya as a cost control officer CV line to the critical care
department
COSTING OUT NURSING SERVICES
Define and measure the consumed time of
providing nursing care by different categories
It can be estimated per hours , per patient or
per day
METHODS FOR COSTING OUT NURSING SERVICES
Cost per day
Dividing the total nursing care cost by the number of patient
days for a specific period
Cost per diagnosis
Categorize patients based on diagnosis
Time and motion
studies Calculating by knowing the specific tasks performed on a
unit on a given day
Do more
with no
more
Competitiv
Use
e
generic
Marketing
Strategies
used to
manage
productivity
One day
Develop
surgery
New flow
admission
Use group
counseling
and
teaching
method
Effective
materials
management
Develop
Develop
new
new
nursing
product
standard
Strategies
used to
manage
productivity
Cross
training , Learning
floating culture
policy
Professional
nursing
THE IMPLICATION OF COST EFFECTIVENESS IN NURSING
ADMINISTRATION
Promoting the role of nursing as
Offering educational program
a core resource in cost effective
about economic principles ,
care as decision maker on health
budgeting and resources use
care spending
Supporting leadership and Promoting research about
management development costing methodology
Developing the data base system
that facilitate information
dissemination and interactive
networking
1. A patient is admitted for open heart surgery , the
billing department might expect that the cost of
his hospitalization will be about 25 000 SR .
Which system of costing they used to estimate
this cost ?
2. The purchasing department send you an
evaluation form for a new IV catheter :
What are the elements that might helps you to give
your accurate feed back
3. The CEO contact you to prepare a document to
convince him why you support YASASSI system with
100 % paperless. Make your draft with your
pertinent points
EXERCISES 4. You are the head of ER department , in the coming
year your staff should take their annual leave , make
a draft plan to help you give them their leaves
without increase of your department cost
