Objectives:
1. Understand Current Trends and Their Impact on Margins: Analyze how external forces and trends affect hospital margins.
2. Revenue Management: Explore strategies to manage and enhance revenue, including addressing revenue leakage and improving charge capture.
3. Cost Management: Discuss the importance of managing costs effectively, including the limitations of traditional cost accounting methods and the benefits of more accurate costing techniques.
4. Keys to Margin Success: Identify key strategies for improving margins, such as increasing charges, managing high-cost settings, and understanding cost transparency.
5. Clinical Transformation: Emphasize the role of clinical transformation in improving outcomes, reducing unnecessary testing, and enhancing care delivery.
6. Financial Incentive Alignment: Align financial incentives under different payment mechanisms to remove waste and improve quality.
7. Data Analytics: Highlight the importance of data analytics in maximizing margins through better decision-making and process improvements.
In this presentation, we will look at pressures exerted on the margin and explore how cost management and complete charge capture can protect and enhance the margin. We will focus on high dollar charge capture concerns while also providing necessary elements of cost management. We will provide details on patient activity costing versus the cost-to-charge ratio (RCC), and relative value unit (RVU) costing methodologies.
