Growth in Day Surgery within the Private Sector 2000 to 2010

Free-Standing Day Surgeries (FDS) were introduced into Australia in 1982. The aim of their establishment in the healthcare arena was to offer a cost-efficient system for the treatment of same day procedures as an alternative to the very high capital and ongoing cost structures of acute-bed hospitals. FDS only operate 5 days a week and have lower ongoing running costs compared to acute bed hospitals, due to the need for acute hospitals to cater for overnight patient recovery requirements.

According to the latest AIHW Hospital Statistics publication, there are currently around 285 FDS in Australia compared to 190 FDS ten years ago. The establishment of FDS continue to thrive and are increasingly becoming a significant item of healthcare expenditure for private health insurance funds. The growth of FDS services in recent years also reflects the increasing incidence of same day versus overnight admissions in the hospital sector in general, due to advances in medical technology, and changes in work practices within hospitals.

 In terms of same day admissions in FDS versus same day acute facilities, while significant growth has been noted across both sectors in the past decade, growth in FDS exceeds that of acute facilities. This likely reflects the increase in the number of FDS facilities and available beds, and a subsequent shifting of some services to these types of facilities.

Haemodialysis (L61Z), Chemotherapy (R63Z), Colonoscopy Sameday (G48C) accounted for the top three most frequently occurring Diagnosis Related Groups (DRGs) in FDS. 

To compare the number of separations and cost-efficiency information between FDS and same day separations in private acute facilities, we reviewed the information regarding number of separations, total benefits and average benefits per separation for the most commonly occurring FDS DRGs in 2008-09.

Private acute facilities still treated a higher overall volume of same day patients than FDS for most DRGs. Only four DRGs were treated with higher frequency in FDS, being Lens Procedures (C16Z), Other Disorders of the Eye (C63Z), Retinal Procedures (C03Z), Haemodialysis (L61Z). Despite this, the average benefit per separation for these DRGs indicates that the costs for patients treated in FDS are less than the cost for the patients treated in private acute facilities, with the exception of Chemotherapy (R63Z) and Circulatory Disorders W/O AMI W Invasive Cardiac invest Procedure-Sameday (F42C).

Tags: Acute Private Hospitals, Benefits, Chemotherapy, Costs, Day Surgery, Private Hospitals, Uncategorized