Friday, February 18, 2011

Making the business case for infection control

Infection Control Today outlines the steps to help IPs make the business case to hospital executives. The first thing IPs need to do is to calculate the economic cost of hospital-acquired infections in their hospital by using the methodology described below:

1. Select one of the following options for the population to be analyzed:
a. Option 1 – select a number such as 10 patients who acquired a CLABSI
b. Option 2 – select a class of HAIs for the last year (include any case where a payor was billed for any service related to an HAI; do not include a case if the primary cause of admission was for an infection; do include re-admissions for HAI)

2. Identify the actual or estimated reimbursement for each case

3. Identify the total costs associated with the case, based upon activity-based cost accounting, if available

4. Identify the costs attributable to the HAI

5. Calculate the gross margin for the case by subtracting the expenses from the reimbursement

6. Compare the gross margin for the case to the gross margin of similar cases without an HAI, matched for age, principal diagnosis and admission severity

Once the economic costs are known the next step is to build the business case following the steps outlined by Dr. Eli Perencevich:

1. Frame the problem and develop a hypothesis about potential solutions
2. Meet with key administrators
3. Determine the annual cost
4. Determine what costs can be avoided through reduced infection rates
5. Determine the costs associated with the infection of interest at your hospital
6. Calculate the financial impact
7. Include the additional financial or health benefits
8. Make the case for your business case
9. Prospectively collect cost and outcome data once the program is in effect

Link to full article

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