Examining the Financial Impact of Altered Fractionation in Breast Cancer: An Analysis Using Time-Driven Activity-Based Costing

Abstract

PurposeValue-based care is increasingly informing treatment decisions in radiation oncology. Although reimbursement differences have been examined for accelerated whole breast irradiation (AWBI) and conventional whole breast irradiation (CWBI), the cost of care delivery is poorly understood. This article describes our experience evaluating costs for altered fractionation in early-stage breast cancer using a time-driven activity-based costing (TDABC) model. Methods and MaterialsProcess maps were developed for 2 treatment regimens, AWBI (42.5 Gy in 16 fractions + 10 Gy in 4 fractions boost) and CWBI (50 Gy in 25 fractions + 10 Gy in 5 fractions boost). Cost was determined based on aggregate cost of personnel, materials, equipment, space, and utilities per unit time and based on the relative proportion of capacity used. The total reimbursement for each regimen was calculated as the aggregate of all billable events during a course of radiation therapy, based on the 2019 Centers for Medicare & Medicaid Services physician fee schedule database. ResultsThe total cost of delivering courses of AWBI and CWBI was $6965 and $9267, respectively, a difference of $2302 (25%). Eighty-six percent of this difference was related to a lower cost of delivering daily treatments. The total reimbursement for AWBI or CWBI was $9665 or $12,908, respectively, a difference of $3243 (25%). Overall, 55% to 60% of total costs were related to personnel, with the remainder related to materials, utilities, space, and equipment. ConclusionsThis analysis shows how TDABC can be used to evaluate resource requirements for different radiation therapy fractionation schedules. We found a substantially lower cost for AWBI compared with CWBI, primarily resulting from fewer daily treatments. As the emphasis in health care shifts toward value-based care, TDABC can help identify opportunities to reduce costs and increase clinical efficiency.