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A break-even analysis of major ear surgery
1Department of Otolaryngology, Addenbrooke's Hospital, Cambridge, UK.
Summary
Major ear surgery often results in a financial loss. To achieve profitability, surgeons must limit theatre time to under 111 minutes, as it significantly impacts costs and earnings.
Area of Science:
- Otolaryngology
- Health Economics
- Surgical Financial Analysis
Background:
- Major ear surgery is a complex procedure with significant financial implications.
- Understanding cost and profit drivers is crucial for sustainable surgical practice.
Purpose of the Study:
- To identify key variables influencing the cost and profitability of major ear surgery.
- To conduct a break-even analysis for this surgical procedure.
Main Methods:
- Retrospective financial analysis of 76 major ear surgery cases.
- Data collected from a UK teaching hospital over a two-year period.
- Analysis focused on income, costs, profit, and theatre time per patient spell.
Main Results:
- A median net loss of £-1345.50 was observed across patient cases.
- Theatre time was the primary determinant of cost and profit, costing £953.24 per hour.
- 94% of earning variation was explained by theatre time (r = -0.969, P < 0.0001).
Conclusions:
- Major ear surgery requires theatre time not exceeding 110 minutes and 36 seconds to break even or achieve profitability.
- Procedure complexity and the number of procedures performed significantly influence theatre time.
