Physician On-Call Scheduling and On-Call Management Blog
by Justin Wampach

How Much Does On-Call Cost your Hospital Today?

Posted by Justin Wampach on Wed, May 23, 2018 @ 10:54 AM

One of the most important steps in getting your new on-call management system project approved and budgeted by hospital administration is to be sure you have a credible cost-benefit analysis that you can use to show why the benefits of your project outweigh the costs and by how much. Without a strong analytical document, it is going to be difficult to convince anyone that you have done your homework.  

Current Costs & A Poor Experience 

How Much Does On-Call Cost your Hospital Today?

What most people tend to forget when creating cost/benefit documents is what it’s costing them today to achieve bad results. This may sound minor, but in fact, may be one of the most important sections of this document. Many hospitals and healthcare organizations do not fully recognize how much money they are currently spending to be unhappy.

This number is imperative so that you have something to compare your investment number to. For example, if on-call costs for your hospital $25,000 per year and you are getting bad results, then wouldn’t it be great if you could spend $15,000 annually and get better results that everyone is happy with? The answer is yes.

But imagine how it would look if you forgot to mention today's cost and instead you just asked to spend $15,000 to make the system better. People need to have something to compare numbers to. This isn't a new topic, I have written about cost justification in the past.

A Cost-Benefit Analysis Outline:

  • Executive Summary

    • One paragraph description of the overview of the project

    • Recommendation (based on the cost-benefit analysis presented below the following project is recommended)

    • Supporting reasons

    • Financial costs outweigh the returns

    • Tangible versus intangible benefits

  • General Information

  • Purpose  

The purpose of the cost benefit analysis is to determine whether implementing a new on-call management system is the best option for your organization to pursue at this time:

  • Overview: what problem is trying to be solved and by whom
  • Description of the problem
  • Overview of the challenges associated with the problem
  • What you are spending today
  • Total costs today to get results you are not happy with
  • Description of Alternatives Considered

  • Cost of a New On-Call Management System

    • Benefits: cost reductions, recurring benefit, hard and soft cost considerations
  • Summary

The outline above should give you a good start at making your case to management. Don’t get too worried if it takes a few attempts. Remember for every project they approve, there are probably five - 10 that are rejected. It’s all about priorities and need.

What You Will Learn From Preparing a Cost-Benefit Analysis:

  1. Clear understanding of the problem
  2. Picture of the market and how others have solved similar problems
  3. Research regarding what it currently costs today to get bad results
  4. Alternative ways to solve the problem
  5. How to build your case

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Topics: call scheduling software, call scheduling