Analysis of profit and loss by injury severity over 20 years at a university level i trauma center

Zachary Dietch, Jeffrey S. Young*, Steven D. Young

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

We examined financial data from a University Level I Trauma Center from 1994 to 2014.We sought to investigate the hypothesis that lower injury severity correlates with increased profitability. We examined data from July 1994 to December 2014. This included hospital charges, Medicare cost data, final reimbursement, and payor source. Patients were separated into Injury Severity Score (ISS) groupings: 0 to 9, 10 to 14, 15 to 24, >24, and >14. Mean and standard deviation of mean are reported. We had complete data on 27,582 patients. Overall profit per case when subtracting costs from reimbursements was $1,932/case (total profit in unadjusted dollars = $53,475,828 or $2,673,791/year). When examined by ISS, profitability was significantly different between ISS 0 to 14 and 15 to 24, and > 24. When charge data were examined, the average loss per case was 2$31,313 for the 27,582 patient data set. When using cost, and not charge data, overall trauma care had a positive margin. Severely injured patients (ISS > 14) were the most profitable, with a significantly higher profit per case than all other groupings. Only through examination of cost data can realistic determinations of trauma center profitability be made. If only charge data had been examined in this study, the overall loss from the 20-year period would have been $863,675,166 and not a profit of $53,475,828.

Original languageEnglish (US)
Pages (from-to)644-648
Number of pages5
JournalAmerican Surgeon
Volume82
Issue number7
StatePublished - 2016
Externally publishedYes

ASJC Scopus subject areas

  • Surgery

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