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Related Experiment Videos

Trauma services: a profit center?

P A Taheri1, D A Butz, C M Watts

  • 1Department of Surgery, University of Michigan Health Systems, Ann Arbor, USA.

Journal of the American College of Surgeons
|April 9, 1999
PubMed
Summary

Severely injured patients, though costly, are essential for trauma center profitability. Caring for these patients drives financial viability and future growth.

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Area of Science:

  • Trauma surgery
  • Healthcare economics
  • Hospital administration

Background:

  • Previous studies indicate inadequate reimbursement for severely injured patients, negatively impacting trauma services and hospitals.
  • Assessing the total cost of care and reimbursement is crucial for understanding trauma service financial health.

Purpose of the Study:

  • To determine the total cost of care for all injured patients discharged in fiscal year 1997.
  • To ascertain the proportion of total costs attributed to severely injured patients (ISS > 15).
  • To evaluate the profit margin for the trauma service.

Main Methods:

  • A retrospective analysis of 696 patients discharged from a Level I Trauma Center in fiscal year 1997.
  • Patients stratified into two groups based on Injury Severity Score (ISS): Group A (ISS > 15) and Group B (ISS < 15).

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  • Integration of trauma registry with hospital cost accounting system (TSI) to determine costs and reimbursement.

    • Main Results:

    • Group A (ISS > 15) had a higher average length of stay (9.8 days) and mortality rate (19.3%) compared to Group B (6.7 days, 6% mortality).
    • Group A accounted for 44% of total service costs with only 28% of discharges, but generated 57% of the profit.
    • Daily profit margin was higher for Group A ($1,242/day) than Group B ($519/day).

    Conclusions:

    • Trauma centers can achieve profitability, with severely injured patients being key drivers.
    • The economic viability of trauma centers is intrinsically linked to the capacity to care for critically injured patients.
    • Investing in the care of the sickest patients is essential for the financial health and growth of trauma centers.