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Society of Laparoscopic Surgery, Invited Presentation, Aug 2015

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Invited presentation at a minimally invasive surgical society to discuss the financial advantages of robotics.

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Society of Laparoscopic Surgery, Invited Presentation, Aug 2015

  1. 1. The Untold Economic Advantages of Robotic Surgery Robert Poston, MD Chairman, Cardiothoracic Surgery St Francis Medical Center, Trenton, NJ
  2. 2. Conventional Wisdom: Robotic surgery is more expensive than open or laparoscopic surgery
  3. 3. LIMITATIONS OF LITERATURE: ACCOUNTING FOR DYNAMIC COSTS
  4. 4. • Standard accounting practice for determining ROI • Spread out fixed costs of capital over the timeframe in which revenue is generated • Hospitals allocate fixed costs to the responsible department Decision to Purchase a Robot Decision to Use a Robot • Not standard practice for calculating costs/profitability of specific procedures Allocate fixed robot costs only to robotic cases Costs/case increased for robotics More cases done open/ laparoscopc Decreased volume of robotic cases Sunk cost fallacy LIMITATIONS OF LITERATURE: AMORTIZATION OF CAPITAL EQUIPMENT
  5. 5. AVAILABLE SAFEGUARDS Totally endoscopic (TECAB) Minithoracotomy safety frontier Unsafe Safe Robotic Heart Surgery Tradeoffs LESSINVASIVENESS Sternotomy • Standardized, automated • Prerequisites understood • Easy access to safety net (CPB) LESSINVASIVENESS AVAILABLE SAFEGUARDS Safe
  6. 6. Totally endoscopic (TECAB) Minithoracotomy safety frontier Unsafe Safe Robotic Heart Surgery Tradeoffs Sternotomy • Standardized, automated • Prerequisites understood • Easy access to safety net (CPB) safety frontier Unsafe Safe Culture of safety - “no blame” approach - psychological safety - collaboration LESSINVASIVENESS AVAILABLE SAFEGUARDS
  7. 7. Expectations Time Performance Low High Low High Rapid Improvements 1st case …Nth case Expectations- reality gap Robotic program introduced Trial and error Status quo Life Cycle of Robotic Surgery
  8. 8. Conclusions 1. Control for costs that are dynamic or sunk 2. Focus on the opportunity costs 3. Tie value into the “big picture” Rational economic analysis of robotics:

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