ACCA Strategic Professional · Advanced Performance Management · Performance optimisation in specific contexts
A public hospital trust is assessed on the 3Es. In the year, it cut the average cost per patient treated by 8% by using cheaper agency staff, but the rate of patients readmitted within 30 days rose from 6% to 11%. Which statement best describes the position?
Economy and efficiency have improved because cost per patient fell, but effectiveness has probably deteriorated because the readmission rate nearly doubled. Lower-cost treatment that fails to achieve recovery does not deliver the hospital's objective, so value for money is doubtful.
- AEconomy and efficiency have improved but effectiveness may have deterioratedCorrect
- BEconomy, efficiency and effectiveness have all improved
- CEffectiveness has improved but efficiency has deteriorated
- DOnly economy has improved and efficiency is unchanged
Explanation
Lower cost per patient indicates better economy and efficiency in the use of resources. A higher readmission rate indicates treatment is less successful, so effectiveness in achieving the objective of patient recovery has fallen. The trust has saved cost at the expense of quality of outcome.
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