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Table 2 Definition of economic terms

From: Economic analysis of two-stage septic revision after total hip arthroplasty: What are the relevant costs for the hospital’s orthopedic department?

Term

Explanation

Example

DRG Revenue

Net Revenue for single case

Cost Weight of DRG x Base rate (€3019.9)

 - Variable Costs

Costs assigned to a single case

Expendable material, Implants, Sterilization, Radiology, Laboratory, Blood Products, Medication

= Marginal Contribution I

 - Case-Fixed Costs

Costs assigned to a single hospital department

Physician Surgery, Nursing Surgery, ICU, Nursing Staff – Normal Ward, Physiotherapy

= Marginal Contribution II

 - Hospital-Fixed Costs

Costs assigned to the entire hospital

Administrative Personal, Energy, Water, Building Maintenance, Gardening

= Operational Result

Perspective of Hospital Department

 Marginal Contribution II/day

Daily contribution of single case to cover hospital-fixed costs

Marginal Contribution II: Average stay of single case

  1. DRG diagnosis related groups, ICU intensive care unit