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Evaluation of pay packages and components payment for the case of appendectomy in Sonla provincial General Hospital in 2012-2013

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Objectives: To evaluate the payment rates and treatment cost for case by case appendicitis at Sonla General Hospital. Subjects and methods: This was a study of hospital cost analysis, using qualitative methods to evaluate the treatment cost of acute appendicitis in 322 patients undergoing laparoscopic and open appendectomy in Sonla Provincial General Hospital from 01 - 2012 to 12 - 2013.

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EVALUATION OF PAY PACKAGES AND COMPONENTS

PAYMENT FOR THE CASE OF APPENDECTOMY IN SONLA PROVINCIAL GENERAL HOSPITAL IN 2012 - 2013

Nguyen Duc Toan*; Pham Le Tuan**; Quach Thi Can***

SUMMARY

Objectives: To evaluate the payment rates and treatment cost for case by case appendicitis

at Sonla General Hospital Subjects and methods: This was a study of hospital cost analysis, using qualitative methods to evaluate the treatment cost of acute appendicitis in 322 patients undergoing laparoscopic and open appendectomy in Sonla Provincial General Hospital from

01 - 2012 to 12 - 2013 The costs included the general expenses and payment receipts from the insurance agencies; the cost of the drug expenditure such as testing, material consumption Data were collected and analyzed by STATA 14.0 Results and conclusion: The average cost of laparoscopic and open appendectomy according to case payment in 2012 (3,203.1 thousand VND and 2,819.9 thousand VND) lower than fee for services in 2013 (6,252.5 thousand VND and 5,238.0 thousand VND), the difference was statistically significant with p < 0.001

* Keywords: Appendicitis; Treatment costs; Pay packages and components

INTRODUCTION

Currently, the insurance system

(HEALTH INSURANCE) of the developed

countries is gradually replacing treatment

cost examination by service fees by more

active methods: periodic payment and

case-based payment [1, 4, 7] The latter is

a paying treatment cost according to

predefined prices for each case This

payment level is built based on professional

process accounting, including all the

services provided for a specific disease

cases from patient admission to discharge

Hospital is paid a predetermined fee for

each illness, if the cost of treatment for

patients is less than predetermined outlay,

the hospital will be entitled to profit and vice versa, hospital can also must compensate [5, 6]

The Government's policy guidelines on health finance and actual activities of the hospital set out the requirements of research, the application of more advanced payment methods such as periodic payment and packages according to cases to supplement and replace the direct payment service Derived from the above requirements, the

study was conducted aiming to: Evaluate

the cost of pay packages and components for the cases of appendectomy disease

in Sonla Provincial General Hospital in

2012 - 2013

* Sonla Provincial Hospital

** Ministry of Health

*** Otorhinolaryngological Central Hospital

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SUBJECTS AND RESEARCH

METHODS

1 Subjects and sample size

The study consists of 322 patients treated

by open appendectomy (OA) and laparoscopic

appendectomy (LA) at Sonla Provincial

General Hospital from 01 - 2012 to

12 - 2013

2 Method

* Research design: Hospital cost was

analyzed by the qualitative methods

* Viewpoint: Evaluate the payment

rates and cost of components for each

case of appendicitis at Sonla General

Hospital

* Study variables: Age; time from

illness to surgery (hour); time from house

to hospital (minute); hospitalization stay

length; the cost of OA/LA by components

fee and total payment in 2012 - 2013 (number of days of treatment; cost of test/antibiotics/pain relief/infusion/drug others/surgery/total prescription/total payment by Health Insurance System and patient’s payment) Costs of this accounting cost perspective of hospital are taken from the accounting data of hospital with the charges and payment from the insurance agency/patients with drug costs, consumables, test Total cost was calculated by components listed above, health insurance and patient’s payment

* Data collection and processing: Data

on inpatient charges were extracted from hospital financial software during 2012,

2013 Data after cleaning were then entered, managed and analyzed using STATA 14.0 statistical software

RESULTS

Table 1: Some characteristics of the study groups

Gender

0.08a

(a: Chi-squared test; f: Mann-Withney test)

Some factors including age, time from illness to surgery, time from home to hospital, hospitalization stay length differed between the two study groups

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Table 2: The cost of OA by components fee and total payment in 2012 - 2013

(Unit: thousand VND); f Mann-Withney test; HI: Health Insurance; P: Patient)

For OA, the cost covered by health insurance includes as ultrasound, test, analgesic, infusion, other prescription drugs, surgical costs, supplies for surgery and treatment in

2013 were higher and more significantly different from p < 0.05 compared to 2012 With the above components paid by the patient, there was hardly any difference with

p > 0.05, among which supplies and other components were different with p < 0.05 The total cost of health insurance paid for an OA in 2013 was 2,608 million VND higher than that of 998.1 thousand VND in 2012; the total cost that patients paid for an

OA in 2013 was 623.9 thousand and in 2012 was 607.6 thousand The total cost for an

OA in 2013 was 6,252 million VND, up from 3,203 million VND in 2012 The difference was statistically significant with p < 0.05

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Table 3: The cost of LAS by components fee and total payment in 2012 - 2013

(Unit: thousand VND) f Mann-Withney test HI: Health Insurance; P: Patient)

Costs for a LA case paid by Health Insurance include the following components: ultrasound, laboratory tests, surgical costs, materials consumed during surgery in 2013 was higher with statistically significant difference (p < 0.05) compared to 2012 Other components such as antibiotics, painkillers, fluids, prescription drugs, medical supplies for treatment and total treatment was not different between two years

The treatment cost, antibiotics, additional fees for surgery, supplies for surgery, other medical supplies, total treatment is significantly different with p < 0.05 between

2013 and 2012 The other components were not significantly different (p > 0.05) The total cost for an OA in 2013 was 5,538 million VND, down to 2,819.9 million VND in 2012 The difference was statistically significant with p < 0.05

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Figure 1: Cost by LA and OA in 2012 - 2013

DISCUSSION

The level of pay packages according to

cases charged for a service package

defined for each group of similarities:

diagnosis, services needed and the costs

required This payment level is built on

the basis of accounting that includes all

the services provided for a specific disease

cases from hospital admission to discharge

[4, 5, 7]

In this study, the accounting is based

on price components and calculated on a

component-by-case basis and on all

out-of-pocket payments After computation,

we found that the average cost per case

for OA in 2012 and 2013 (3,203.1

thousand VND and 6,252.5 thousand VND) was higher than the cost per one LA case

2012 and 2013 (p < 0.001)

Therefore, if conducted pay packages according to cases, the cost of the hospital and the cost of the patient must be taken into account This result is also consistent with Duong Huy Lieu et al’s review [2] when applying the professional process for the disease group of acute appendicitis

in Thanhnhan Hospital and Bavi, Hanoi

He saw the advantages of the method of case-based package payment, which enhances management improvement in hospital, reduces unreasonable costs and more transparency with the internal auditing

3203.1

2819.8

6252.5

5238

7000

6000

5000

4000

3000

2000

1000

0

N¨m 2012

N¨m 2013

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and independent auditing, improves

operational efficiency, reduces the

average time and the use of drugs and

tests In Sonla Provincial Hospital, this

professional procedure has been applied

and shows a significant cost reduction

between both methods of surgery for

patients with acute appendicitis in 2012

and 2013

After an analysis of data of the

appendectomy patients before and after

implementation of pay packages according

to cases, Kim K.H et al (2016) [5] saw a

decrease in postoperative period (2.8 ±

1.0 vs 3.4 ± 1.9 days on, p < 0.001), but

no reduction in the total cost of the hospital

The independent factors associated with

the costs were patients of 70 years of age

or more (OR = 3.214; 95%CI: 1.769 - 5.840;

p < 0.001) and surgical time longer than

100 minutes (OR = 3.690; 95%CI: 6.599,

p < 0.001 - 2.007) In addition, patients

≥ 70 years old had a risk of accompanied

infections nearly as high as 10 times

(95%CI: 20.214; p < 0.001, 5.141) and

hospital risks were as high as 3.255 times

(95%CI: 1.731, p < 0.001, 6.119)

CONCLUSIONS

The average cost for an OA case

recorded in 2012 and 2013 (3,203.1

thousand VND and 6,252.5 thousand

VND) was higher than the cost for one LA

in 2012 and 2013 (2,819.9 thousand VND

and 5,238 thousand VND) The difference was statistically significant with p < 0.01

REFERENCES

1 Tran Van Tien Payment service fees,

hidden risks Journal of Medical Information

2001, 10

2 The Ministry of Health, Ministry of Finance Circular No 04/2012 of Ministry of

Health and Ministry of Finance dated 29/02/2012 issued a maximum framing some examination and treatment in medical establishments The Healing of the State 2012

3 Vu Van Le, Pham Tuan, Nguyen Thi Kim Tien Some of the changes in clinical

practice and patient costs in two pilot hospitals pay packages according to the patients Journal of Practical Medicine 2012,

5 (820), pp.2-5

4 Edgar Hagenbichler The Austrian DRG

system Federal Ministry of Health 1st edition,

2010, July

5 Kim K.H, Lee S.C, Lee S.K et al Does

Korea's current diagnosis-related group-based reimbursement system appropriately classify appendectomy patients? Ann Surg Treat Res

2016, 91 (2), pp.66-73

6 Kwon S Payment system reform for

health care providers in Korea Health Policy and Planning 2003, 18 (1), pp.84-92

7 Song J.K, Kim C.Y Participation

determinants in the DRG payment system of obstetrics and gynecology clinics in South

Korea J Prev Med Public Health 2010, 43 (2),

pp.117-124

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