The efficient price: an opportunity for funding reform

Research output: Contribution to journalArticle

Standard

The efficient price: an opportunity for funding reform. / Karnon, J; Ben-Tovim, DI; Pham, CT; Caffrey, Orla; Hakendorf, PH; Crotty, M; Phillips, PA.

In: Australian Health Review, Vol. 35, No. 4, 01.01.2011, p. 501-506.

Research output: Contribution to journalArticle

Harvard

Karnon, J, Ben-Tovim, DI, Pham, CT, Caffrey, O, Hakendorf, PH, Crotty, M & Phillips, PA 2011, 'The efficient price: an opportunity for funding reform', Australian Health Review, vol. 35, no. 4, pp. 501-506. https://doi.org/10.1071/AH10966

APA

Karnon, J., Ben-Tovim, DI., Pham, CT., Caffrey, O., Hakendorf, PH., Crotty, M., & Phillips, PA. (2011). The efficient price: an opportunity for funding reform. Australian Health Review, 35(4), 501-506. https://doi.org/10.1071/AH10966

Vancouver

Karnon J, Ben-Tovim DI, Pham CT, Caffrey O, Hakendorf PH, Crotty M et al. The efficient price: an opportunity for funding reform. Australian Health Review. 2011 Jan 1;35(4):501-506. https://doi.org/10.1071/AH10966

Author

Karnon, J ; Ben-Tovim, DI ; Pham, CT ; Caffrey, Orla ; Hakendorf, PH ; Crotty, M ; Phillips, PA. / The efficient price: an opportunity for funding reform. In: Australian Health Review. 2011 ; Vol. 35, No. 4. pp. 501-506.

Bibtex

@article{ac50f56fa6a74894966abdc30df5d345,
title = "The efficient price: an opportunity for funding reform",
abstract = "Objective. Proposed Australian healthcare reforms describe a move towards partial Commonwealth funding of public hospitals, whereby hospitals will be paid an 'efficient price' for each separation, incorporating both the costs and benefits of services. This paper describes a potential approach to setting the efficient price using risk adjusted cost-effectiveness (RAC-E) analysis. Methods. RAC-E analysis uses a decision analytic framework to estimate lifetime costs and survival for individual patients, which are standardised by comparing observed and expected values. Analysis of standardised costs and effects at different hospitals identifies efficient hospitals, from which efficient prices can be defined. Results. A RAC-E analysis of services for stroke patients at the four main public hospitals in South Australia demonstrates the need to account for costs and benefits in identifying efficient hospitals. The hospital with the best patient outcomes incurred additional costs relative to less effective hospitals. If an investment of AU$ 14 760 to gain an additional life year in stroke patients is deemed to be a cost-effective use of resources, then the most effective hospital is also the most efficient hospital. Conclusions. The applied RAC-E analysis demonstrates a framework for comparing the economic efficiency of care provided at different hospitals, which provides a basis for defining the efficient price and appropriate funding incentives to achieve better patient outcomes.",
author = "J Karnon and DI Ben-Tovim and CT Pham and Orla Caffrey and PH Hakendorf and M Crotty and PA Phillips",
year = "2011",
month = jan,
day = "1",
doi = "10.1071/AH10966",
language = "English",
volume = "35",
pages = "501--506",
journal = "Australian Health Review",
issn = "0156-5788",
publisher = "CSIRO Publishing",
number = "4",

}

RIS

TY - JOUR

T1 - The efficient price: an opportunity for funding reform

AU - Karnon, J

AU - Ben-Tovim, DI

AU - Pham, CT

AU - Caffrey, Orla

AU - Hakendorf, PH

AU - Crotty, M

AU - Phillips, PA

PY - 2011/1/1

Y1 - 2011/1/1

N2 - Objective. Proposed Australian healthcare reforms describe a move towards partial Commonwealth funding of public hospitals, whereby hospitals will be paid an 'efficient price' for each separation, incorporating both the costs and benefits of services. This paper describes a potential approach to setting the efficient price using risk adjusted cost-effectiveness (RAC-E) analysis. Methods. RAC-E analysis uses a decision analytic framework to estimate lifetime costs and survival for individual patients, which are standardised by comparing observed and expected values. Analysis of standardised costs and effects at different hospitals identifies efficient hospitals, from which efficient prices can be defined. Results. A RAC-E analysis of services for stroke patients at the four main public hospitals in South Australia demonstrates the need to account for costs and benefits in identifying efficient hospitals. The hospital with the best patient outcomes incurred additional costs relative to less effective hospitals. If an investment of AU$ 14 760 to gain an additional life year in stroke patients is deemed to be a cost-effective use of resources, then the most effective hospital is also the most efficient hospital. Conclusions. The applied RAC-E analysis demonstrates a framework for comparing the economic efficiency of care provided at different hospitals, which provides a basis for defining the efficient price and appropriate funding incentives to achieve better patient outcomes.

AB - Objective. Proposed Australian healthcare reforms describe a move towards partial Commonwealth funding of public hospitals, whereby hospitals will be paid an 'efficient price' for each separation, incorporating both the costs and benefits of services. This paper describes a potential approach to setting the efficient price using risk adjusted cost-effectiveness (RAC-E) analysis. Methods. RAC-E analysis uses a decision analytic framework to estimate lifetime costs and survival for individual patients, which are standardised by comparing observed and expected values. Analysis of standardised costs and effects at different hospitals identifies efficient hospitals, from which efficient prices can be defined. Results. A RAC-E analysis of services for stroke patients at the four main public hospitals in South Australia demonstrates the need to account for costs and benefits in identifying efficient hospitals. The hospital with the best patient outcomes incurred additional costs relative to less effective hospitals. If an investment of AU$ 14 760 to gain an additional life year in stroke patients is deemed to be a cost-effective use of resources, then the most effective hospital is also the most efficient hospital. Conclusions. The applied RAC-E analysis demonstrates a framework for comparing the economic efficiency of care provided at different hospitals, which provides a basis for defining the efficient price and appropriate funding incentives to achieve better patient outcomes.

U2 - 10.1071/AH10966

DO - 10.1071/AH10966

M3 - Article

C2 - 22126956

VL - 35

SP - 501

EP - 506

JO - Australian Health Review

JF - Australian Health Review

SN - 0156-5788

IS - 4

ER -