INTRODUCTION AND OBJECTIVES: In addition to promoting quality, new payment models are emerging with a mandate to control healthcare costs. On a national level, there is significant variation in the cost of major index cancer operations. Accurate cost accounting, clinician-defined metrics, risk-adjustment, and feedback of data are essential steps in using cost data for quality improvement. We sought to account for institutional direct costs incurred during radical cystectomy, identify the main cost drivers in the index hospitalization, and examine surgeon variability in the main cost drivers within the context of patient characteristics. METHODS: Direct itemized institutional cost data for 321 consecutive radical cystectomies performed by 5 de-identified surgeons was obtained. Costs were adjusted using a multiplier equal to the ratio of normalized Medicare reimbursement over institutional reported cost. Interactive web-based dashboards were created to feedback patient characteristics, outcomes, cost components, and anonymized surgeon cost comparisons. Analysis of variance was used to compare patient characteristics and cost components across surgeons. Multivariable logistic regression was used to model above average costs on surgeon and patient specific factors. RESULTS: The median adjusted total cost per case was $13009.57 (interquartile range $11254.82, $15730.53). Inpatient, anesthesia, disposable device, operating room, and physician costs accounted for the majority of the total costs incurred. Inpatient costs were not significantly different across surgeons, however maximum differences between cost means for anesthesia ($93.62, p1⁄40.0039), disposable device (energy devices, $279.48, p