Budget Analysis I | GHIAL 2012 Essay Example
Case Study Assignment Part I
Budget Analysis I | GHIAL 2012
As a health care administrator/manager it will be imperative for you to work with the organizational budget but also have an exemplary understanding and purpose of the budget for your health care organization.
Medicare payments for health care organizations have a complex set of rules. Medicare has paid skilled nursing facilities on a prospective basis since July 1, 1998. The rate is a per diem rate that is calculated to include the costs of all services, including routine, ancillary, and capital.
Per diem payments for each admission are case mix adjusted using a resident classification system known as resource utilization groups.
For Part A inpatient institutional care at health care organizations, Medicare uses the inpatient prospective payment system. A prospective payment system is one in which the healthcare organization receives a certain payment for each episode of care provided to a patient, regardless of the actual amount of care used. The amount of the payment is based on the value of a certain diagnosis as determined by Centers for Medicare & Medicaid Services in the form of diagnosis-related groups (DRGs).
Instructions:
1. Open and review the spreadsheet labeled “GHI AL 2012 Budget”. (located in Doc
Sharing)
2. Be observant of the specific details such as:
a. Total census
b. Total days
c. Total revenue (all categories such as medical supplies, supply revenue, other service revenue, non-operating revenue)
d. Review the revenue difference before and after the contractual allowance (CA) and what was the factor(s) which were allocated to the contractual allowance
e. Then review the expenses what areas fall under the costs of the facility
(protected, direct costs, indirect costs which are nonreimbursable)
f. The closing of the budget you will review all the totals of the areas discussed above, both revenue and expenses.
g. Your primary areas will be:
i. Total
Budget Analysis I | GHIAL 2012
As a health care administrator/manager it will be imperative for you to work with the organizational budget but also have an exemplary understanding and purpose of the budget for your health care organization.
Medicare payments for health care organizations have a complex set of rules. Medicare has paid skilled nursing facilities on a prospective basis since July 1, 1998. The rate is a per diem rate that is calculated to include the costs of all services, including routine, ancillary, and capital.
Per diem payments for each admission are case mix adjusted using a resident classification system known as resource utilization groups.
For Part A inpatient institutional care at health care organizations, Medicare uses the inpatient prospective payment system. A prospective payment system is one in which the healthcare organization receives a certain payment for each episode of care provided to a patient, regardless of the actual amount of care used. The amount of the payment is based on the value of a certain diagnosis as determined by Centers for Medicare & Medicaid Services in the form of diagnosis-related groups (DRGs).
Instructions:
1. Open and review the spreadsheet labeled “GHI AL 2012 Budget”. (located in Doc
Sharing)
2. Be observant of the specific details such as:
a. Total census
b. Total days
c. Total revenue (all categories such as medical supplies, supply revenue, other service revenue, non-operating revenue)
d. Review the revenue difference before and after the contractual allowance (CA) and what was the factor(s) which were allocated to the contractual allowance
e. Then review the expenses what areas fall under the costs of the facility
(protected, direct costs, indirect costs which are nonreimbursable)
f. The closing of the budget you will review all the totals of the areas discussed above, both revenue and expenses.
g. Your primary areas will be:
i. Total