Measuring the value of process improvement initiatives in a preoperative assessment center using time-driven activity-based costing

Katy Elizabeth French, Heidi W. Albright, John C Frenzel, James R. Incalcaterra, Augustin C. Rubio, Jessica F. Jones, Thomas W Feeley

Research output: Contribution to journalArticle

27 Citations (Scopus)

Abstract

Background: The value and impact of process improvement initiatives are difficult to quantify. We describe the use of time-driven activity-based costing (TDABC) in a clinical setting to quantify the value of process improvements in terms of cost, time and personnel resources. Problem: Difficulty in identifying and measuring the cost savings of process improvement initiatives in a Preoperative Assessment Center (PAC). Goals: Use TDABC to measure the value of process improvement initiatives that reduce the costs of performing a preoperative assessment while maintaining the quality of the assessment. Strategy: Apply the principles of TDABC in a PAC to measure the value, from baseline, of two phases of performance improvement initiatives and determine the impact of each implementation in terms of cost, time and efficiency. Results: Through two rounds of performance improvements, we quantified an overall reduction in time spent by patient and personnel of 33% that resulted in a 46% reduction in the costs of providing care in the center. The performance improvements resulted in a 17% decrease in the total number of full time equivalents (FTE's) needed to staff the center and a 19% increase in the numbers of patients assessed in the center. Quality of care, as assessed by the rate of cancellations on the day of surgery, was not adversely impacted by the process improvements.

Original languageEnglish (US)
Pages (from-to)136-142
Number of pages7
JournalHealthcare
Volume1
Issue number3-4
DOIs
StatePublished - Dec 1 2013

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Costs and Cost Analysis
Process Assessment (Health Care)
Cost Savings
Quality of Health Care
Ambulatory Surgical Procedures

Keywords

  • Cancer
  • Costs of care
  • Performance improvement
  • Preoperative assessment
  • Quality
  • TDABC

ASJC Scopus subject areas

  • Health Policy

Cite this

Measuring the value of process improvement initiatives in a preoperative assessment center using time-driven activity-based costing. / French, Katy Elizabeth; Albright, Heidi W.; Frenzel, John C; Incalcaterra, James R.; Rubio, Augustin C.; Jones, Jessica F.; Feeley, Thomas W.

In: Healthcare, Vol. 1, No. 3-4, 01.12.2013, p. 136-142.

Research output: Contribution to journalArticle

French, Katy Elizabeth ; Albright, Heidi W. ; Frenzel, John C ; Incalcaterra, James R. ; Rubio, Augustin C. ; Jones, Jessica F. ; Feeley, Thomas W. / Measuring the value of process improvement initiatives in a preoperative assessment center using time-driven activity-based costing. In: Healthcare. 2013 ; Vol. 1, No. 3-4. pp. 136-142.
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