Once the procedure cost data base has been developed and management reports have been created, the database will need to be updated annually to capture changes in labor wage rates, supply costs and allocated overheads. Changes in technology and resource utilization may also need to be accounted for. Through accurate maintenance of the database, the hospital can be assured of having on-going and accurate management Procedure Cost and Decision Support reporting capabilities.
HCI needs certain information prior to performing any database maintenance. You can find a detailed list of the data needed by going to the Data Requirements page. [PDF 1 page/ 18k]
HCI consultants use the following process for proper database maintenance:Annual Review and Update - Field Work 1-2 days
- Review existing charge items for which procedure cost standards have been developed. This will ensure that all statistically significant revenue producing items have been captured.
- Review labor distribution reports, department variance reports and other management information, and see if any of these show material impact to on the procedure cost database.
- Review finalized budget information relating to wage rate increases and capital equipment expenditures.
- Update Hospital Allocated Overheads based on most recently available Medicare Cost statistics.
- Create a report that provides an overall summary of any changes made to the procedural Cost Items.