Cost Optimization for Patient Referrals

Abstract The purpose of this study is to determine the cost model associated with surgical referrals of a level one surgical department in a large city for two large departments namely orthopedic and Podiatry, and to analyze the feasibility of increased capability specifically in these two departments within the referral area to minimize travel time and cost for the patients and the provider. Patient data was obtained and used to determine origin and the distances patients had to travel to reach the hospital with surgical capability. The out of town patients are considered referred patients and they were clustered into five clusters based on average distances (weighted) from their hometown to the hospital. It is the purpose of this project to determine the cost associated with surgical referrals to the surgical department for the two procedures and to examine the alternative for a location(s) to maximize access for the patients and minimize cost to the provider.