A framework for price tariffs in the costing structures of South African private hospitals
- Authors: Botha, Gideon
- Date: 2020
- Subjects: Medical care, Cost of -- South Africa , Medical economics -- South Africa Medical care -- South Africa -- Cost control Cost accounting
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10948/50432 , vital:42167
- Description: The increase of South African health care costs can be extrapolated into the global healthcare cost challenge, with various factors contributing to this problem. One of the factors viewed as being central to the rising cost of health care is the inability of health care provider organisations to accurately measure unit costs of resources used to treat a patient for their medical condition and patient outcomes. The measurement of an accurate unit cost and patient outcomes is imperative to improving value, which is seen as an improvement in outcomes for every rand spent. The determination of price tariffs and the price tariff payment model used to onward bill the price tariff for medical services have also been identified as having a central role in improving value in health care. In order for price tariffs to improve value, they should be reflective and be based on an accurate unit cost that reflects the cost of resources used to provide efficient and effective care for a patient’s medical condition. For the price tariff payment model to improve value, it needs to reward providers for delivering superior patient outcomes at a lower cost by making price tariffs contingent on achieving specified outcomes as well as incorporating performance payments or holdbacks based on outcomes achieved. This study provides a framework for price tariffs in the costing structures of South African private hospitals. Secondary research was conducted in the form of a comprehensive literature search in order to do an interpretative analysis of the strengths and weaknesses of the various combinations of unit costing models and price tariff payment models used to determine prices in private hospitals. The literature review was followed by primary research that involved three phases, all of which used a qualitative research approach. In Phase 1, primary data were collected using unobtrusive measures that consisted of a data request first, followed by unstructured interviews with representatives of Hospital A and Hospital B to obtain an analysis of the combinations of unit costing model and price tariff payment model used for a laparoscopic appendectomy. In Phase 2, data were collected by means of an unstructured interview with a surgeon describing a laparoscopic appendectomy procedure in detail and based on this process description, the approximate costs for the various resources that were sourced from different suppliers could be calculated. The data analysis and interpretation were done in three phases, with each phase having different research objectives. The data were first coded and then interpreted. In the first primary research phase, the combinations of unit costing models and price tariff payment models used by private Hospital A and Hospital B were evaluated. In the second phase, the recommended combination of unit costing model and price tariff payment model was applied to a hypothetical example and evaluated. In the final phase, based on the outcome of the first and second research phases, a combination of unit costing model and price tariff payment model for private hospitals was recommended. The results showed that the recommended combination of unit costing and price tariff payment model namely time-driven activity-based costing with the global fee price tariff payment model was the most appropriate to determine price tariffs in private hospitals when compared to the unit costing models and price tariff payment models used by Hospital A and Hospital B for a laparoscopic appendectomy. Furthermore, the recommended combination of unit costing model and price tariff payment model was found to be usable for the determination of price tariffs in the costing structures of private hospitals. The time-driven activity-based costing model and global fee price tariff payment model should be adopted or used as guidelines for determining price tariffs in private hospitals in South Africa. Price tariffs would be more transparent as they would reflect the actual resource cost of treating the patient and the resources used and treatment provided could then be assessed against the delivery value chain that charts the principal activities involved in a patient’s care for a medical condition to ensure that patient best-practice protocols are followed. The proposed framework enables the determination of price tariffs based on an accurate unit cost reflecting the actual resources used to provide efficient and effective care and also improve value for the patient.
- Full Text:
- Date Issued: 2020
- Authors: Botha, Gideon
- Date: 2020
- Subjects: Medical care, Cost of -- South Africa , Medical economics -- South Africa Medical care -- South Africa -- Cost control Cost accounting
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10948/50432 , vital:42167
- Description: The increase of South African health care costs can be extrapolated into the global healthcare cost challenge, with various factors contributing to this problem. One of the factors viewed as being central to the rising cost of health care is the inability of health care provider organisations to accurately measure unit costs of resources used to treat a patient for their medical condition and patient outcomes. The measurement of an accurate unit cost and patient outcomes is imperative to improving value, which is seen as an improvement in outcomes for every rand spent. The determination of price tariffs and the price tariff payment model used to onward bill the price tariff for medical services have also been identified as having a central role in improving value in health care. In order for price tariffs to improve value, they should be reflective and be based on an accurate unit cost that reflects the cost of resources used to provide efficient and effective care for a patient’s medical condition. For the price tariff payment model to improve value, it needs to reward providers for delivering superior patient outcomes at a lower cost by making price tariffs contingent on achieving specified outcomes as well as incorporating performance payments or holdbacks based on outcomes achieved. This study provides a framework for price tariffs in the costing structures of South African private hospitals. Secondary research was conducted in the form of a comprehensive literature search in order to do an interpretative analysis of the strengths and weaknesses of the various combinations of unit costing models and price tariff payment models used to determine prices in private hospitals. The literature review was followed by primary research that involved three phases, all of which used a qualitative research approach. In Phase 1, primary data were collected using unobtrusive measures that consisted of a data request first, followed by unstructured interviews with representatives of Hospital A and Hospital B to obtain an analysis of the combinations of unit costing model and price tariff payment model used for a laparoscopic appendectomy. In Phase 2, data were collected by means of an unstructured interview with a surgeon describing a laparoscopic appendectomy procedure in detail and based on this process description, the approximate costs for the various resources that were sourced from different suppliers could be calculated. The data analysis and interpretation were done in three phases, with each phase having different research objectives. The data were first coded and then interpreted. In the first primary research phase, the combinations of unit costing models and price tariff payment models used by private Hospital A and Hospital B were evaluated. In the second phase, the recommended combination of unit costing model and price tariff payment model was applied to a hypothetical example and evaluated. In the final phase, based on the outcome of the first and second research phases, a combination of unit costing model and price tariff payment model for private hospitals was recommended. The results showed that the recommended combination of unit costing and price tariff payment model namely time-driven activity-based costing with the global fee price tariff payment model was the most appropriate to determine price tariffs in private hospitals when compared to the unit costing models and price tariff payment models used by Hospital A and Hospital B for a laparoscopic appendectomy. Furthermore, the recommended combination of unit costing model and price tariff payment model was found to be usable for the determination of price tariffs in the costing structures of private hospitals. The time-driven activity-based costing model and global fee price tariff payment model should be adopted or used as guidelines for determining price tariffs in private hospitals in South Africa. Price tariffs would be more transparent as they would reflect the actual resource cost of treating the patient and the resources used and treatment provided could then be assessed against the delivery value chain that charts the principal activities involved in a patient’s care for a medical condition to ensure that patient best-practice protocols are followed. The proposed framework enables the determination of price tariffs based on an accurate unit cost reflecting the actual resources used to provide efficient and effective care and also improve value for the patient.
- Full Text:
- Date Issued: 2020
The medical profession and the universalisation of South African Health Care: analysing the response of Eastern Cape general practitioners to the National Health Insurance proposals
- Authors: Hannah, Bridget
- Date: 2017
- Subjects: Health insurance -- South Africa , Health insurance -- Government policy -- South Africa , Medical care, Cost of -- South Africa , National health insurance -- South Africa , Medical policy -- South Africa , Physicians -- South Africa -- Attitudes
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10962/6075 , vital:21029
- Description: In 2011, the Green Paper on National Health Insurance (NHI) in South Africa was released, committing the South African government to a 14-year plan to radically transform the currently inequitable health system towards providing comprehensive quality health care free at point of access to all citizens. The pursuit of universal health coverage (UHC) in South Africa forms part of a global aspiration to achieve more equitable healthcare delivery. One of the critical issues emerging from the Green Paper was how the NHI would be staffed. The NHI is unlikely to be adequately staffed without GPs but evidence suggests that private sector doctors have always been resistant to nationalisation or socialisation as a threat to their occupational power and professional status. The core work of this thesis is a study undertaken of 78 doctors in the Eastern Cape, focusing on private sector general practitioners (GPs), as the largest constituency of medical professionals in the country. The interview schedule was designed to gauge doctors' responses to the NHI, encourage discussion on their reactions to the reforms, and its implications in their view for private medical practice. The responses of the doctors are analysed through application of two theoretical themes, namely: (i) actor-centred policy creation, discussed through application of Walt and Gilson's (1994) shared focus on content, context, process and actors in the policy process, and (ii) the debate on medical professionalism, espoused by Freidson (1973, 1994) and argued against by Haug and Sussman (1969), and McKinlay (1972, 1993). Thus, if the process of policy making must take into account key actors in order to deliver a successful policy transition, what are the implications if these actors are actively excluded, or do not willingly cooperate? Does this indicate anything telling about the private sector's role to play in the pursuit of universal healthcare?
- Full Text:
- Date Issued: 2017
- Authors: Hannah, Bridget
- Date: 2017
- Subjects: Health insurance -- South Africa , Health insurance -- Government policy -- South Africa , Medical care, Cost of -- South Africa , National health insurance -- South Africa , Medical policy -- South Africa , Physicians -- South Africa -- Attitudes
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10962/6075 , vital:21029
- Description: In 2011, the Green Paper on National Health Insurance (NHI) in South Africa was released, committing the South African government to a 14-year plan to radically transform the currently inequitable health system towards providing comprehensive quality health care free at point of access to all citizens. The pursuit of universal health coverage (UHC) in South Africa forms part of a global aspiration to achieve more equitable healthcare delivery. One of the critical issues emerging from the Green Paper was how the NHI would be staffed. The NHI is unlikely to be adequately staffed without GPs but evidence suggests that private sector doctors have always been resistant to nationalisation or socialisation as a threat to their occupational power and professional status. The core work of this thesis is a study undertaken of 78 doctors in the Eastern Cape, focusing on private sector general practitioners (GPs), as the largest constituency of medical professionals in the country. The interview schedule was designed to gauge doctors' responses to the NHI, encourage discussion on their reactions to the reforms, and its implications in their view for private medical practice. The responses of the doctors are analysed through application of two theoretical themes, namely: (i) actor-centred policy creation, discussed through application of Walt and Gilson's (1994) shared focus on content, context, process and actors in the policy process, and (ii) the debate on medical professionalism, espoused by Freidson (1973, 1994) and argued against by Haug and Sussman (1969), and McKinlay (1972, 1993). Thus, if the process of policy making must take into account key actors in order to deliver a successful policy transition, what are the implications if these actors are actively excluded, or do not willingly cooperate? Does this indicate anything telling about the private sector's role to play in the pursuit of universal healthcare?
- Full Text:
- Date Issued: 2017
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