Cost Analysis, Cost Controlling and it's Effectiveness-Selected Hospitals

Abstract

Cost-Effectiveness is a method for identifying interventions that achieve the greatest level of health impact per unit of expenditure. Effectiveness is typically measured in terms, improvements in health status. An important aspect of cost-effectiveness analysis is that it can be used to assess technical and allocative efficiency. Cost-benefit analysis is very widely used and it is therefore important that its methods be properly understood. In this article to contribute to the understanding by giving a formal description of the subject and examining the theoretical basis for some of the techniques which have become accepted tools of decision-making around the world. The data from the Supraja Hospital in Hyderabad can be used to identify are as of inefficiencies by comparing the costs and outputs. By comparing results of the various facilities, the range of costs for outpatient and inpatient services becomes evident and reasons for the differences can be better analyzed : low utilization, high administrative costs, personnel staffing, equipment and maintenance budgets, etc. Strategies can then be developed to address the problems, which may include increasing utilization of under-utilized facilities,changing staffing patterns, closing under-utilized facilities,etc. This study high lights the Cost analysis of various departments and the cost cutting recommendations to the Supraja Hospitals for the period of two years (2014-16).