Skip to main content

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