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Process cost analysis

A process cost analysis is used when:

  • an innovative therapy with new treatment processes comes onto the market

  • possible resource bottlenecks at the service provider, which could limit the use of the therapy, should be identified in great detail and in collaboration with the service provider

  • different therapies should be compared holistically and from the perspective of the healthcare provider at the process cost level

  • The aim is to show that an innovative therapy, even if it is expensive, has personnel, organizational and financial advantages for the service provider

By analyzing the processes and determining the resource requirements, possible organizational, personnel or financial bottlenecks when using a drug or medical device can be identified at an early stage. This means that solutions can be developed in a timely manner to remove these hurdles and enable the use of a product.

Since these analyzes can also be carried out before a drug therapy or technology is introduced, it is possible to accurately determine the expected resource requirements before the new therapy is even used.

The expenses for a therapy determined via the process cost analysis can be compared with the DRG revenues, or the expense/revenue ratio for two therapies can be compared.

As a provider of innovative therapies, you can use the process cost analysis to show a service provider how the use of your product affects the human and financial resource requirements. Or how it can improve the relationship between expenses and income. Supposedly expensive therapies can demonstrate economic advantages over an established, cheaper therapy if the processes used to apply the therapy are simpler or fewer resources have to be used.

The data obtained from the analyzes is highly relevant and credible for healthcare providers. The analyzes are not difficult-to-understand health economic models with numerous assumptions and based on the setting of a clinical study, but rather the survey of the current situation with the depiction of the specific treatment processes and the real performance figures of the respective healthcare provider from routine use.

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