Assessing the cost of cancer care delivery using a time-driven, activity-based costing software.

25 Background: Poor costing systems and measurement have led to cross-subsidies and cost-shifting in health care. A large academic cancer center has adopted Robert Kaplan's bottom-up cost accounting methodology called time-driven, activity-based costing (TDABC). TDABC in health care has been proven to be an effective cost accounting tool to measure and improve care delivery by standardizing and creating transparency around patient care processes. The project aims to process map and identify event triggers associated with each process map, use a software applications to compute the costs and resource capacities.

METHODS: Information technology and financial subject-matter experts integrated clinical, resource, and financial data from the institution's enterprise information warehouse, general ledger, resource and asset management systems into the software application. Clinical business managers, nurse managers and other clinical content experts helped identify patient-level care processes.

RESULTS: The institution deployed a project team to integrate data from the institution's enterprise information warehouse and aid in the process mapping across three multidisciplinary care centers. The team was able to successfully cost both direct and overhead costs associated with 69 head and neck, 18 endocrine, and 15-20 proton therapy patient-level processes over 7 different business department within 7 months. The resource capacity analysis was the most difficult to analyze due of the lack of transparency around resource's clinical, administrative, and research responsibilities. Dashboards are currently being developed to help assess changes in patient care processes, cost or resource utilization.

CONCLUSIONS: This methodology can be used across all health care organizations in all countries to analyze the true cost of care delivery.