Purpose: One technique which some hospitals have used in an attempt to
control Operating Room costs is a ''zero tolerance Tor overtime'' pol
icy. We used a case cost analysis to determine if this policy was alwa
ys cost. effective. Method: A case cost analysis was designed based on
a ''test case'' which would start late in the day. The case would las
t for three hours of which 1-1/2 hr would be during regular hours, and
1-1/2 hr would incur overtime, Costs were analysed using a ''patient
pays,'' ''society pays'' and ''hospital pays'' analysis. Costs were ba
sed on figures determined from the SMBD-Jewish General Hospital budget
, Quebec Health Insurance fees, and Government of Canada statistics.Re
sults: Regardless of who pays, in this case scenario it was more cost
effective to proceed than to postpone surgery. Costs of proceeding wit
h the surgery in the ''patient pays, ''society pays,'' and ''hospital
pays'' models were $1,832.00, $1,227.40, and $1,215.00 respectively. T
he costs of postponing the surgery in the same three models were $1,93
7.00, $1,336.80, and $1,436.00. Conclusion: A ''zero tolerance for ove
rtime'' policy may be too rigid to be consistently cost effective.