Economic evaluation of computed tomography in a teaching hospital

Abstract

Computed tomography is very important for accurate diagnosis of some health conditions. However, the procurement and maintenance of CT equipment is expensive and the operating cost per study is high. Against the backdrop, that financial resources are scarce, prudent management and appropriate price fixing of CT scanning procedures is necessary for continuity in business. Objectives: To evaluate the operations of a CT facility employing accounting, financial, and management principles to elucidate how to optimize economic gains in the operations of medical imaging facilities. Method: Record of CT scans done at the University of Port Harcourt Teaching Hospital (UPTH) from May, 2007 to December, 2008 and the revenues generated from the studies were obtained and used for economic performance evaluation of the CT facility. The evaluation was done by analyzing the average variable, fixed, and total costs, as well as the average revenue. Results: The operating cost per study for each of the studies was less than the billing per study thus, implying that profit was made per each study. Some studies contributed more to the profit per study than others e.g. sinuses, inner ear, and TMJ contributed 28,456.04 each to the profit/study while abdomen and chest contributed the least amounts of 17,792.01 and 17,818.24 respectively. Conclusion and recommendation: CT facility can generate enough profit to sustain itself if the products are adequately priced. It was therefore, recommended that part of the profit generated should be used to raise capital via a sinking fund for equipment replacement as demonstrated in the study.