Costing E-Mails From Finance Directorate
From:
Sharon Gregory
Sent:
10 July 2002 17:12
To:
Ian Harris
Cc:
Ian Perkin; Suzie Bailey; Ian Hamilton
Subject:
RE: Costing for SLAs - draft tariff - further information
Importance:
High
Could
I please have an extension and submit my comments to you by end of play Friday?
I am out of the office all day tomorrow and comments from my clinicians
are still trickling in....
Thanks
Ian
-----Original Message-----
From: Ian Harris
Sent: 10
July 2002 16:13
To:
Jon Scott; Suzie Bailey; Karen Larcombe; Sharon Gregory; Daniel Elkeles;
Gillian Lovesey; Shaun Stacey
Cc:
Ian Hamilton; Marie Grant; Kevin Harbottle; Ian Perkin
Subject: Costing for SLAs - draft
tariff - further information
Dear All,
further to the
information that was sent to you on Monday evening I attach an additional file
which may help to focus your deliberations. The attached file contains
two spreadsheets which show the average cost per unit of cost driver at both
full and variable cost levels. These unit costs when combined with weightings
for each product form the basis of the tariffs sent to you earlier.
To clarify if an
elective procedure within general surgery had an average length of stay of 3
days then the total ward cost for that procedure would be 3 times £127.85 or £383.55.
This cost includes nursing, ward drugs, ward MSSE, capital charges on the ward,
trust overheads attributable to that ward. The variable ward cost for that same
procedure would be 3 x £19.88 or £59.64. This costs would be made up of direct
ward consumables and ward drugs.
Please do not hesitate
to call me if you have any queries or comments.
Regards
Ian Harris
Income Controller
xtn 1463
P.S.
Please note that an
error has been made in the costing of gynaecology where the ward costs have been
incorrectly attributed to other direct costs rather than to ward costs. This
will be corrected before the publication of the next draft of costs.
<< File: unit cost report.xls >>
-
From:
Ian Harris
Sent:
11 July 2002 15:33
To:
Karen Larcombe; Suzie Bailey; Sharon Gregory; Shaun Stacey; Gillian
Lovesey; Daniel Elkeles; Jon Scott
Cc:
Ian Perkin; Ian Hamilton; Marie Grant; Kevin Harbottle
Subject:
Costing for SLAs Consultation - Further Information
Dear All,
the attached file contains one
spreadsheet which fills in the gaps between the tariff and unit cost report
already sent to you.
I have shown only those
products which account for at least 80% of the total cost to be recovered
through the tariff, for each point of delivery for each specialty. This approach
reduces the number of products to look at by more than 50%.
The spreadsheet contains three
main sections: the first part list the products and descriptions by specialties
and shown the unit variable and full costs as well as the activity used to
calculate the tariff; the second part lists the weights for each product for
each cost pool; the third part lists the weights and unit costs of the materials
used in calculating some of the unit costs as well as the total material cost
for each product. Materials is jargon used by the costing software to describe
items which are applied to procedures directly rather than through the cost
pools. These are defined by us and include some catheter lab consumables,
pacemakers and some orthopaedic prosthetics. We still have limited time to
include some additional materials if they can be identified to procedures and a
cost calculated for them. If you wish to add any materials please let me know
but bear in mind that they will need to be of significant value to be included
at this stage.
The tariffs are calculated by
summing the products of cost pool weights multiplied by cost pool unit costs
(distributed yesterday) and adding total material value.
Please do not hesitate to call
me if you have any questions or comments on these.
Thanks
Ian Harris
xtn 1463
