As healthcare methodologies continue to develop, the identification, control and reduction of healthcare costs (resource consumption) become increasingly important to every individual in the healthcare system:
- Consumers are becoming more discerning purchasers of services as their share of the bill increases;
- Physicians must maintain and increase quality of care while also striving for cost effectiveness;
- Hospitals must delicately manage their delivery of services to maximize efficiency and quality of care while minimizing costs.
There are several strategies for reducing cost, but the most effective (and least detrimental to quality of care) includes the accurate development of fully allocated procedural cost data on which decision support reporting will be based. This approach gives Hospital Administration and Utilization Review managers the information they need for making decisions that will impact the future .
HealthCare Concepts, Inc. (HCI) is a company that specializes in Cost Accounting and Decision Support consulting services for the healthcare provider. We focus on the implementation of the above approach: the control and reduction of costs through the proper analysis of procedural cost data. By identifying and analyzing the total costs of providing care, we assist providers in allocating their resources in a manner that maximizes utility and minimizes cost. Administrators are also able to know the financial impacts of various physician specialties before recruitment occurs so the they can plan accordingly, not blindly making decisions without enough information that will impact the margin for years.
Briefly, here are some of our services (see more detailed explanations elsewhere on the website):
- Procedure Cost Analysis & Reporting (PCAR)
- This is our primary service, a process that provides Healthcare Executives with accurate procedure cost data as well as a Microsoft Access-based Decision Support reporting tool. This service includes two parts:
- Procedure Cost Analysis: This is the process of developing a database of costs specific to the operations of a given entity. We use a method called Activity Based Costing. This allows us to develop fully allocated costs for each procedure.
- Procedure Cost Reporting: A database full of information is of little use if it cannot be analyzed and examined in a meaningful form. HCI has developed a Microsoft Access-based Decision Support tool designed to assist its clients in converting the data obtained in the Procedure Cost Analysis into valuable information. The tool utilizes information from the Healthcare facility's existing patient information system - along with data gained from the Procedure Cost Analysis - to develop reports that can be used in strategic and operational decision making.
- Procedure Cost Database Maintenance
- Once the Procedure Cost database has been developed, it will need to be updated periodically (annually is most common) to capture changes in labor wage rates, supply costs and allocated overheads. In addition, the procedure cost standards may need to be revised and new standards developed to reflect any changes in technology and resources used for specific procedures. The maintenance of the database occurs through a comprehensive annual review and update, designed to incorporate budget and updated information into the procedure cost standards.
- Surgical Services Procedure Pricing
- This service is designed to more accurately capture the cost and resource consumption of specific surgical procedures performed in the facility (i.e. appendectomy, total hip replacement, etc.)
- Comparative Reporting (being updated and will be available in the near future)
- Upon completion of each Procedure Cost Analysis & Report and subsequent maintenance update, HCI will upload data into online cost and utilization database and share our observations of significant differences.