Statistical Analysis of the Relationship of Distance and Mode of Transportation on Length of Stay at Brooke Army Medical Center

摘要

The command group at Eisenhower Army Medical Center (Eisenhower) requested a financial analysis to determine which of two alternatives would be the more cost effective method for performing spinal surgery on CHAMPUS eligible beneficiaries living within a 200 mile area surrounding the hospital. The alternatives were to reimburse civilian health care providers for spinal surgery using money provided by Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) or, to designate Eisenhower as a Specialized Treatment Service for spinal surgery and bring the patients to Eisenhower. This study evaluated the relevant costs associated with both alternatives over a four year period, fiscal year 1997 through 2000. The costs were inflated at various rates and reported in 1997 values using a discounted cash-flow analysis. It was determined that establishing Eisenhower as a Specialized Treatment Service for spinal surgery would save $510,352 in CHAMPUS dollars over the four-year decision period. Additionally, Eisenhower could recapture $3,807,101 in third party insurance dollars over the same period. After paying off the estimated $ 1,400,804 for equipment and orthopaedic appliances needed to start the project, the net present value of the savings for the stakeholders is $2,916,649.