An empirical analysis of Unit costs of public hospitals in Jordan

Abstract Background: Public providers in low-middle income countries face enormous pressures to meet complex needs of its population. This study aimed to benchmark unit costs of hospital services in public providers in Jordan to provide useful insight and readings of healthcare delivery and sustainability. Methods: Unit costs of hospital services per admission, inpatient days, outpatient visits, emergency visits and surgical operations were estimated using standard average costing method. Unit costs per inpatient days was estimated relevant to nine specialities, staff and selected medical services too. Unit costs were estimated in Jordanian Dinars (exchange rate= US$1.41). Results: Average unit cost per admission was 782.3 JDs (U$1101.8), per inpatient day was 236.6 JDs (U$ 333.2), per bed day was 172.9 JDs (U$244.9), per outpatient visit was 58.4 JDs (U$ 82.3), per operation was 449.6 JDs (U$ 633.2) and per emergency room visit was 31.8 JDs (U$44.8). ICU/CCU and OB/GYN presented the highest unit costs per inpatient days across providers; U$532.9 and U$510.7 respectively. Unit costs varied depending on service utilization, type of service and organizational outset. Conclusions: Countries in areas of political conflicts face enormous fiscal constraints, health policy makers, managers and stakeholders ought to understand these challenges and foster use of value based budgeting and performance analysis.