How Much Does It Cost for a Surgical ICU Bed in a Public Hospital in India

Activity-based costing (ABC) is a costing technique that identifies the activities in an organization and assigns the cost to the activities based on the actual resources consumed for each activity. The method was used to ascertain the cost of surgical intensive care unit (SICU) bed in an institute of national importance, such as All India Institute of Medical Sciences (AIIMS), Bhubaneswar, from June 2019 to February 2021.

The present study aimed to ascertain the cost of SICU beds per day by the ABC technique. The different elements of cost were analyzed. The cost for selected patients in the SICU unit was calculated by preparing a cost sheet based on the elements of cost and studying the existing charging system.

A total of 38 cases were selected from the departments of General Surgery, Urology, Orthopedics, and Plastic surgery. Based on the ABC technique, the activity map was developed for SICU (cost center), and the time consumed together with resources for each activity was calculated with respect to human resources, consumables, medicines, and overheads. Thus, the total cost incurred by the hospital for SICU beds per day was estimated using the cost sheet analysis.

The cost was calculated to be Rs. 11,241/- per day (155 USD) against the hospital charge of Rs. 35/- (<0.5 USD) for general patients and Rs. 1000/- for private ward patients. Exchange Conversion Rate used is 1 USD = 72.60 INR (2020-21).

The public sector hospitals in India provide health-care services for free and at a subsidized rate; hence, ascertaining the cost incurred by the hospital is necessary for policy decisions.