Hospital Costs to Implement

Part 1 of the assignment: Within this scenario the productivity loss for the six-month learning period is calculated to be $1,233. Beginning with month #1 at $353 ($1.41 times 250 equals $353), compute the cost of productivity loss for the remaining five months as explained in the scenario, to total an overall amount of $1,233. Be prepared to show and explain your computations.

It is given that every discharge takes 1.7 minutes

The total number of discharges in six months is 250; it is calculated by dividing 1,500 discharges by 6 months.

The cost is calculated using the rate of $50 per hour; therefore, per minute, the cost is given as ($50/60 minutes) giving $0.83 per minute. Therefore cost per claim is given as $1.41 ($0.83 times 1.7).

And for the first month, the total productivity loss incurred is $353 ($1.41 times 250). For the inpatient coding.

The simplicity rate of production increases at the straight line for the 6-month period.

This means that we divide the total cost incurred in 6 months by 6. ($353/6), giving $59 per month; this is the cost reduction each month.

The cost of production after the first month for the reaming 6 months can therefore be calculated as:

1^st month = 353

2^nd month = (353-59) =294

3^rd month = (294-59) = 235

4^th month = (235 -59) =176

5^th month = (176-59) = 117

6^th month = (58-59) =-1

Total (353+294+235+176+117+59) = $1233.

Therefore the total loss for the remaining 5 months is given as (1233-353) = $880.

Part 2 of the assignment: Later in the scenario CMS states that the hospital’s total cost amounts to $303,990. Study the explanation and summarize the totals of each type of cost discussed. When you are finished your total should amount to $303,990. Be prepared to show and explain how you arrived at this total.

Training cost fulltime coders =$1500($500 x 3)

Temporary coder cost = $1200($50 x 8hrs x 3 coders)

Total training cost (1500+1200) =$2700

Productivity loss

Total loss for 6 month period =$1233 regarding the surgical.

Total loss for 6 month-period with regard to outpatient = $53

System upgrade cost = $300,000

Total cost = (2700+1233+53+300,000) = 303,986, Rounding off to $303,990.

References

Paterson, M. A. (2014). Healthcare Finance and Financial Management: Essentials for   Advanced        Practice Nurses and Interdisciplinary Care Teams. DEStech Publications, Inc.

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ASSIGNMENT 08

HE420 Healthcare Finance and Accounting

Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling, and grammar. Sources must be cited in APA format. Refer to the “Format Requirementsʺ page for specific format requirements.

Hospital Costs to Implement

Refer to the Scenario for a Midwest Community Hospital, located in Appendix 26-A

• Part 1 of the assignment: Within this scenario the productivity loss for the six-month learning period is calculated to be $1,233. Beginning with month #1 at $353 ($1.41 times 250 equals $353), compute the cost of productivity loss for the remaining five months as explained in the scenario, to total an overall amount of $1,233. Be prepared to show and explain your computations.
• Part 2 of the assignment: Later in the scenario CMS states that the hospital’s total cost amounts to $303,990. Study the explanation and summarize the totals of each type of cost discussed. When you are finished your total should amount to $303,990. Be prepared to show and explain how you arrived at this total.