Islet transplantation costing study

Islet transplantation costing study

Nationally Funded Centres Reference Group

Duration: April - May 2012


In late 2010, the CHSD completed a costing project on behalf of the Juvenile Diabetes Research Foundation that formed part of a submission to the NFC Program to fund a National Islet Transplantation Service. The outcome of this project was a report that provided cost estimates of current islet transplantation services in Australia.

In December 2011, the Nationally Funded Centres Reference Group (NFCRG) established a working group to further consider the NFC submission. The working group commissioned this project to address specific costing issues.

What we did

CHSD was engaged to undertake the project and to complete supplementary costing on behalf of the NFCRG. The project built on the work undertaken in 2010 and involved completion of additional detailed costing of the islet transplantation process and the development of a costing methodology based on a ‘Staged Care Approach’ where three possible stages of a patient’s journey are separately costed and the development of separate costs for four different models of service delivery currently under consideration by the NFCRG.

A final aspect of the project was consideration of the potential to adopt an Activity Based Funding approach for the transplantation component of islet transplantation. The conclusion was drawn that, in our view, the only component that could be considered for an ABF approach is the inpatient episode during which the transplantation occurs. However, as the inpatient component of care represents less that 10% of the total cost of care for each transplant, it is questionable whether it would be sensible to implement a different funding arrangement for this episode of care.

Last reviewed: 23 March, 2016

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