Patient Level Costing

Trusts all over the UK are starting to see the power of patient level costing. There are at least five major Foundation Trusts piloting this with about eight more following in their wake. Monitors last set of compliance documents stopped just short of requiring Trusts to self-certify that they were able to track and identify all their costs. There is still, however, big pressure from the Audit Commission, Monitor and the Department of Health for Trusts to be able to break down their drugs and supplies costs by patient.

Patient costing is not just about satisfying regulators. The participating pilot Trusts know that effective business management ultimately relies upon knowing the cost profile of every procedure and diagnosis and that this can only be obtained by tracking and identifying patient costs.

It will probably become clear that the Trusts which have simple and effective point of use cost capture systems are the ones which will generate the biggest surpluses in the current PbR environment. It may even become one of Monitors compliance requirement for Foundation Trusts in the future.

With the forthcoming arrival of HRG 4 this pressure can only grow. And as key Trusts submit more and more accurate reference costs the tariffs may tighten and the Trusts who actually know their costs well will be the ones in the strongest position.

Omnicell is the tool that Trusts can purchase and implement today easily and effectively which will put them in a position to do full patient costing of medicines and supplies. Just add theatre times, bed days, central pharmacy drugs and test costs and overheads to arrive at a complete cost profile.