Traditionally reimbursement has moved to PPS for Medicare and managed care for Medicaid, while the long-term care insurance market is shrinking due to operational losses.   As bundled payment (physician, hospital and LTC components under one umbrella) and episodic pricing (acute, sub-acute, skilled nursing, assisted living home care, hospice) take over the reimbursement model with a pricing model the continuum is at risk for outcomes (length of stay, cost per episode, quality of life for the patients as demonstrated by satisfaction data).

How does this impact the providers’ capability to forecast and manage cost for improved outcomes? How in the world are you going to track labor, medications, medical supplies and overhead costs by diagnosis, problem and intervention then measure productivity, efficiency,  outcome and quality?

Nursing Labor is the largest component of cost for any episode … 50%

1. Therapy Labor is the next largest component of cost for any episode … 20%
2. Overhead (building costs, housekeeping, maintenance, laundry, etc.) is the next largest cost … 15%
3. Medications are the next largest component of cost for each episode. … 10%
4. Medical supplies are next … 5%

Well, it is finally the expectation that health care will be managed as a business rather than an institution.  Standardized cost accounting and pricing models using software technologies for admitting, administering care, documentation and measuring the outcomes.

The Caregiver Management System does this as an add-on to your current systems. Education and training is provided by your CFO, controller and accounting firm.  We provide your software provider the technology in the form of libraries with models for costing and pricing values and the tools for documenting progress, outcome and quality measurement.  Jerry Rhoads