Cost List for Manitoba Health Services

1. MANITOBA CENTRE FOR HEALTH POLICY & EVALUATION Cost List for ManitobaHealth Services PRINCIPAL AUTHOR PHILIP JACOBS May, 1999

2. CONTRIBUTING AUTHORS: MARIAN SHANAHAN NORALOU ROOS MICHAEL FARNWORTH

3. What is a cost list? What are its advantages? A single source of information Can be used to understand resource allocation Cost List Advantages

4. Can be used to do comparative studies Includes standard costs Allows population-based studies Cost List Advantages

5. Includes standard costs for: Hospital care Prescription drugs Diagnostic procedures Home care Long term institutional care Physician costs Cost List Advantages

6. Hospital Care: Inpatient care Day procedures Emergency department Hospital type adjustment factors Standard Costs

7. Prescription Drugs: Price as listed in the formulary Manufacturer’s wholesale drug price plus mark-up Dispensing fee Standard Costs

8. Diagnostic Procedures: Included in case cost for patients treated in hospitals Radiological procedures: physician tariffs and associated payments Laboratory procedures: cost per 100 workload units Standard Costs

9. Home Care: Hourly or per-visit cost by type of care provider and agency Standard Costs

10. Long Term Institutional Care: Per diem payment by level of care for proprietary care homes Per diem drug and capital costs Payments made by residents Rehab and chronic care hospital per diem Standard Costs

11. Physician Costs: Manitoba Health Services Insurance Plan Physician’s Manual Fee differentials Standard Costs

12. Example 1: To estimate the annual cost of health care for people according to age group. How is Cost List used?

13. Method:For each age group, use the Manitoba Health Research Data Base to sum costs of: hospitals, physicians, nursing homes, home care, outpatient diagnostics, and prescription drugs. How is Cost List used? Method:

14. Example 2: To compare the cost of health care for people living in different regions of Manitoba. How is Cost List used?

15. Method: Using this cost list and the Manitoba Health Research Data Base, it will be possible to estimate the average cost per person for each Manitoba RHA. How is Cost List used? Method:

16. A cost list can’t be used for: Cost List Limitations Comparing treatments not reflected in case-mix groupers When micro-costs are needed

17. Funding, budgeting, comparing facilities Evaluating societal costs of health care Cost List Limitations A cost list can’t be used for:

18. Updates to the cost list A Canadian cost list Comparisons between provincial cost lists The Future

19. Single source of information Can be used to understand resource allocation Can be used to do comparative studies Especially valuable for population based studies Cost List Summary

20. Hospital care Prescription drugs Diagnostic procedures Home care Long term institutional care Physician costs Cost List Summary

21. M Manitoba Centrefor Health Policy& Evaluation C H P E DESIGNED BY RJ CURRIE