Introducing QI Tools and Approaches Cost-Analysis Tool APPENDIX F Session E Facilitative Supervision for Quality Improvement Curriculum 2008.

Introducing QI Tools and Approaches

Cost-Analysis Tool

APPENDIX FSession E

Facilitative Supervision for Quality Improvement Curriculum

2008

Cost-Analysis Tool (CAT)

Simplifying cost analysis for managers and staff of health care services

What CAT Measures

Direct costs– Cost of staff time directly used

to provide a service or clinical procedure

– Cost of commodities, expendable supplies, and medications for a particular service or clinical procedure

What CAT Does Not Measure

Start-up costs (equipment, preservice training, etc.)

Depreciation

Opportunity costs to clients (cost to clients for seeking services—e.g., transportation, lost wages, etc.)

Quality of services provided

Demand for the service

Clients’ willingness and ability to pay

CAT Can Be Used to:

Set user fees for different services

Negotiate subsidies

Compare costs of changes in type of procedure and provider (Such decisions must be based on good medical practice, client’s situation, etc.)

CAT: Sample Results for IUD Insertion

Total cost of staff time = 6.85 Rupees

Cost of expendable supplies = 7.5 Rupees

Cost of IUD = 100 Rupees

Total direct costs = 114.35 Rupees

Fee the client is charged for the service = 6 Rupees

Who Benefits from Using CAT?

Headquarters, donor organizations

Site administrators Service providers and staff Clients

How Often Should CAT Be Used?

One or two times a year, when there arechanges in: Cost of supplies (due to inflation,

availability, etc.) Staff salaries (due to salary increases,

changes in staffing, etc.) Services offered (due to services being

reorganized or new services begun) Client load

Action Plans

INFO

INFO

District Supervisor’s

PlanCommunity Action Plan

COPE® Action Plan

Site Training Plan

Cost Analysis Plan

The QI Process

Information gathering and analysis

Action plan developmentand prioritization

Implementation

Follow-up/evaluation