October 2023
Article
Medical Care

Health System Perspective on Cost for Delivering a Decision Aid for Prostate Cancer Using Time-Driven Activity-Based Costing

By: David R. Ho, Robert S. Kaplan, Jonathan Bergman, David F. Penson, Benjamin Waterman, Kristin C. Williams, Jefersson Villatoro, Lorna Kwan and Christopher S. Saigal

| Pages:8

Abstract

Previsit decision aids (DAs) have been shown to improve decisional quality. But the cost to deploy a DA has not been previously estimated. We interviewed or observed relevant personnel at three institutions that had implemented DA programs for men with prostate cancer. We used time-driven activity-based costing to estimate cost. Total average costs (USD) per patient were $38 (UCLA), $60 (Olive View-UCLA), and $42 (Vanderbilt), respectively, with labor costs being the largest component. Electronic health record (EHR) integration streamlined DA delivery efficiency and produced substantial cost savings. DA use was also associated with shorter clinic visit length and high levels of decision quality.

Keywords

Time-Driven Activity-Based Costing; Health Care and Treatment; Cost Accounting; Health Industry

Citation

Ho, David R., Robert S. Kaplan, Jonathan Bergman, David F. Penson, Benjamin Waterman, Kristin C. Williams, Jefersson Villatoro, Lorna Kwan, and Christopher S. Saigal. "Health System Perspective on Cost for Delivering a Decision Aid for Prostate Cancer Using Time-Driven Activity-Based Costing." Medical Care 61, no. 10 (October 2023): 681–688.