Departmental Cost to Charge Ratio
The quickest path to Cost data is uploading a Cost to Charge Ratio (CCR) for Departmental charges. As charges are posted daily in Meditech the CCR is applied against the Charge to calculate the Cost. This solution allows clients to have a daily cost calculated. CCRs have an effective start and end date which allows the CCR to be updated as frequently as needed. Most clients use their annual Medicare Cost Report as the source for the CCR.
BAR Procedure (Charge Master) Costing
This methodology requires Direct/Indirect and Fix/Variable Cost to be uploaded for each BAR Procedure Item. This allows for much more specific costing but also requires the client to maintain costing for thousands of CDM items.
Blended Approach
This methodology incorporates both the CCR and BAR Procedure Costing methodologies. This allows clients to upload a CCR to address costing for the majority of BAR Procedures but for specific high impact/cost procedures the Direct/Indirect and Fix/Variable cost information is applied. During the daily processing of Cost data Medisolv will first apply cost calculations to the Bar Procedures that have Direct/Indirect and Fix/Variable cost information entered and for the remaining BAR Procedures the CCR will be applied.
- When a charge item is posted to a patient record, RAPID will check first to see if data is loaded at the BAR Procedure level and break the charge down into Direct and Indirect Cost plus Fixed and Variable Cost. If data is not available at the BAR Procedure level, RAPID will multiply the charge by the department cost ratio to generate a line item cost for that BAR Procedure.
Within the RAPID application, customers may upload cost related data in order to take advantage of the Cost and Profitability reports therein. Medisolv has made it simple to upload cost data at the department cost ratio level or at the BAR Procedure level. Enabling Cost reports in RAPID allows the customer to run other reports that address profitability from several different criteria.