A Micro-Costing Approach to Estimating Hospital Costs for Appendectomy in a Cross-European Context

Health Economics, Vol. 17, pp. 59-69, January/February 2008

11 Pages Posted: 26 Mar 2010 Last revised: 8 Jul 2010

See all articles by Jonas Schreyoegg

Jonas Schreyoegg

University of Hamburg - Faculty of Economics and Business Administration

Date Written: January 1, 2008

Abstract

This paper aims (a) to determine whether variations in the hospital costs of appendectomy in EU member states are larger within individual countries or between different countries and (b) to explore causes for variations in costs between hospitals and countries. To do so, hospitalisation costs and reimbursement rates for appendectomy were obtained from 54 hospitals in nine European member states based on 1786 cases using a standardised methodology. Regression analysis was performed using hospital characteristics, treatment characteristics, and purchasing power parities (PPP) as explanatory variables in a multilevel framework. The within-country standard error was estimated to 294 euros (27%), whereas the between-country standard error was 796 euros (73%). Excluding hospitals in Spain, Hungary, and Poland, which had significantly lower costs than hospitals in the other countries in our analysis, the within-country standard error was 331 euros (57%) and the between-country standard error dropped to 248 euros (43%). Regression results show that the treatment decision for open surgery was associated with significantly lower costs, whereas a greater number of beds and a higher staff per bed ratio were associated with significantly higher costs. PPP explained a major part of the between-country variance.

Suggested Citation

Schreyoegg, Jonas, A Micro-Costing Approach to Estimating Hospital Costs for Appendectomy in a Cross-European Context (January 1, 2008). Health Economics, Vol. 17, pp. 59-69, January/February 2008. Available at SSRN: https://ssrn.com/abstract=1574134

Jonas Schreyoegg (Contact Author)

University of Hamburg - Faculty of Economics and Business Administration ( email )

Von-Melle-Park 5
Hamburg, 20146
Germany

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