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A primer on time-driven activity-based costing in brachytherapy.

Ria Mulherkar1, Andrew Keller2, Timothy N Showalter3

  • 1Drexel University School of Medicine, Philadelphia, Pennsylvania.

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Summary
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Time-driven activity-based costing (TDABC) helps analyze brachytherapy costs, revealing drivers of expense and reimbursement issues. This method can optimize efficiency and support value-based care in radiation oncology.

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Area of Science:

  • Medical Economics
  • Radiation Oncology
  • Health Services Research

Background:

  • Value-based healthcare models are increasingly adopted in medical settings.
  • Time-driven activity-based costing (TDABC) is a valuable tool for analyzing healthcare costs.
  • Brachytherapy, a key radiation oncology treatment, faces evolving reimbursement landscapes.

Purpose of the Study:

  • To review the utility and limitations of TDABC in brachytherapy.
  • To explore how TDABC can inform cost analysis and practice changes in brachytherapy.
  • To assess TDABC's role in the context of new payment models in radiation oncology.

Main Methods:

  • Literature review of studies applying TDABC to brachytherapy.
  • Analysis of TDABC's insights into cost drivers, institutional factors, and personnel in brachytherapy.
  • Examination of TDABC's applicability to alternative payment models (APMs) in radiation oncology.

Main Results:

  • TDABC elucidates cost variations across brachytherapy modalities.
  • It identifies specific factors influencing costs, such as institutional elements and staff involvement.
  • TDABC highlights discrepancies between costs and reimbursement, impacting clinical decisions.

Conclusions:

  • TDABC offers a robust framework for understanding brachytherapy costs and improving efficiency.
  • The methodology can guide optimization of staff roles and treatment fractionation for value-based care.
  • Applying TDABC can drive practice transformation and enhance patient care incentives in radiation oncology.