Cost analysis in interventional radiology—A tool to optimize management costs

Abstract Objective The objective of the study was to analyze the methods to reduce cost in interventional radiology departments by reorganizing procurement. Materials and methods All products used in the Department of Interventional Radiology were inventoried. An ABC-analysis was completed and A-products (high-value and high turnover products) underwent a XYZ-analysis which predicted demand on the basis of ordering frequency. Then criteria for a procurement strategy for the different material categories were fixed. The net working capital (NWC) was calculated using an interest rate of 8%/year. Results Total annual material turnover was 353,000€. The value of all A-products determined by the inventory was 260,000€. Changes in the A-product procurement strategy tapped a cost reduction potential of 14,500/year€. The resulting total saving was 17,200€. Improved stores management added another 37,500€. The total cost cut of 52,000€ is equivalent to 14.7% of annual expenses. Conclusion A flexible procurement strategy helps to reduce the storage and capital tie-up costs of A-products in interventional radiology without affecting the quality of service provided to patients.