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Opportunity cost: a systematic application to surgery.

Abhishek Chatterjee1, Michael J Payette, Christopher P Demas

  • 1Department of Surgery, Dartmouth Hitchcock Medical Center, Lebanon, NH 03756, USA. abhishek.chatterjee@hitchcock.org

Surgery
|June 23, 2009
PubMed
Summary
This summary is machine-generated.

Opportunity cost in surgery is the potential gain lost when choosing a less efficient technology. This study presents a model to calculate this cost, showing surgeons can better compare devices by valuing unused time.

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Area of Science:

  • Health Economics
  • Surgical Technology Assessment
  • Clinical Efficiency Analysis

Background:

  • Opportunity cost, the value of the next best alternative foregone, is crucial in economic assessments but underutilized in surgical technology evaluations.
  • Increasing healthcare costs necessitate a clear understanding of opportunity cost for informed surgical technology choices.
  • Previous cost comparisons in surgery have overlooked the economic impact of additional operating time associated with less efficient technologies.

Purpose of the Study:

  • To develop and demonstrate a system for estimating the opportunity cost associated with surgical procedures.
  • To provide surgeons with a framework for evaluating the economic efficiency of competing surgical technologies.

Main Methods:

  • A hypothetical model compared two clinically equivalent surgical devices, where one (Device A) increased operating time by 30 minutes.
  • Five high-volume, elective surgical procedures with durations under 240 minutes were selected from a 2007 university hospital dataset.
  • Opportunity cost was calculated by dividing a procedure's profit margin by its duration, representing the value of time.

Main Results:

  • Otolaryngology exhibited the highest opportunity cost ($38/min) using myringotomy as the model procedure, resulting in a $1,140 cost for 30 minutes of delay.
  • General surgery showed the lowest opportunity cost ($9/min) with laparoscopic inguinal hernia repair, leading to a $270 cost for the same delay.
  • The model quantifies the economic implications of choosing a less time-efficient surgical device.

Conclusions:

  • Incorporating opportunity cost analysis allows for a more accurate comparison of surgical device efficiency.
  • Quantifying the economic value of time saved by more efficient technologies aids in decision-making.
  • This approach helps surgeons make economically sound choices when faced with technologically comparable options.