Cost Accounting in the Operating Room

One of the problems in dealing with the above scenario is the lack of timely, accurate cost data upon which to base any decisions. Cost information is inadequate in many hospital departments, but the place where the lack of accurate cost data is most evident is often the Operating Room. The Surgery department is the leader in medical supply usage for the entire hospital. Decisions are made here which have a significant impact on costs. The choices made by the physicians and clinical staff drive those costs. All need access to the data. Lack of information at this level leads to choices which can be very costly. For example, the decision to carry dozens of different types of surgical implants can result in tens of thousands of dollars wasted on obsolete inventory. Access to this cost information is needed in other areas of the hospital as well, to make decisions at a higher level. Failure here can be even more costly. How? A healthcare organization entering into fixed rate contracts without understanding its costs for specific procedures can experience financial disaster.