Visualization of cost versus revenue ratio facilitates cutting expenditure on supplies and equipment of surgical operations

Abstract

Financial performance of surgical operations constitutes one of the key components in proper hospital administration. At Miyagi Cancer Center (MCC) we have been able to make one-to-one correspondence between the cost and the patient on the in-house computer system, which was introduced in 2016, operating for the electric medical records the material ledger. Based on these accumulated data for 2 years, we analyzed the financial performance of each surgical operation case and demonstrated the results in visual formatting, i.g. tables and graphs, which helps the managing staff in charge to easily grasp the points of data. The items of analysis were categorized into：(1) cost versus revenue ratio (CRR) for each surgical division, (2) CRR for each surgical procedure, (3) the cost of medical supplies and equipment, and (4) anesthetic drug costs. It was revealed that the costs of implants in plastic and orthopedic surgeries are on the increase and CRR of endoscopic surgeries stays high. Also disclosed was that supply costs of auto-suture and energy devices amount approximately 40% of the total expenditure for supplies and equipment cost. We believe that continuous financial analysis of this kind and visual presentation will greatly contribute to focusing on the targets of reducing the cost on medical supplies and equipment.