MS-DRG Calculations Ex 202022 Ch 5 $$$$$$

xlsx

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Northeast Wisconsin Technical College *

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10530162

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Finance

Date

Feb 20, 2024

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xlsx

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4

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ded33b658972bb311ce90fe9818fe444ef81b043.xlsx Basic MS-DRG Calculations Hospital Happy Hopsital Base Rate $6,200 MS-DRG 387 Inflammatory bowel disease w/o CC/MCC RW 0.7007 Charges $ 9,456.82 CCR 0.429 LOS 3 MS-DRG Reimbursment $ 4,344.34 Cost of the encounter $ 4,056.98 Profit/Loss $ 287.36 Subtract the cost of the encounter from the MS-DRG Reimbursement Multiply the fully adjusted hospital specific base rate × the MS-DRG Relative Weight (RW) Multiply the charges × the cost to charge ration (CCR) Example: This example shows how to calculate the MS-DRG reimbursment rate for an acute care inpatient admission. The hospital specific base rate we are using for this example includes adjustments for IME, DSH and wage index.
ded33b658972bb311ce90fe9818fe444ef81b043.xlsx Basic MS-DRG Calculations Hospital Community Hopsital Base Rate $6,200 1 Hospital Memorial Hospital Base Rate $7,300 6 MS-DRG 192 MS-DRG 192 RW 0.7092 RW 0.7092 Charges $ 15,000.00 Charges $17,500.00 CCR 0.429 CCR 0.531 LOS 3 LOS 4 MS-DRG Reimbursment $ 4,397.04 MS-DRG Reimbursment $ 5,177.16 Cost of the encounter $ 6,435.00 Cost of the encounter $ 9,292.50 Profit/Loss $ 2,037.96 Profit/Loss $ 4,115.34 Hospital Community Hopsital Base Rate $6,200 2 Hospital Memorial Hospital Base Rate $7,300 7 MS-DRG 190 MS-DRG 190 RW 1.144 RW 1.144 Charges $ 14,975.24 Charges $16,578.24 CCR 0.429 CCR 0.531 LOS 4 LOS 5 MS-DRG Reimbursment $ 7,092.80 MS-DRG Reimbursment $ 8,351.20 Cost of the encounter $ 6,424.38 Cost of the encounter $ 8,803.05 Profit/Loss $ 668.42 Profit/Loss $ 451.85 Hospital Community Hopsital Base Rate $6,200 3 Hospital Memorial Hospital Base Rate $7,300 8 MS-DRG 473 Cervical spinal fusion w/o CC/MCC MS-DRG 473 Cervical spinal fusion w/o CC/MCC RW 2.5124 RW 2.5124 Chronic obstructive pulmonary disease w/o CC/MCC Chronic obstructive pulmonary disease w/o CC/MCC Chronic obstructive pulmonary disease w MCC Chronic obstructive pulmonary disease w MCC Instructions: Calculate the MS-DRG reimbursement rate for each case. Notice the changes in base rate for each facility. Remember the hospital specific base rate includes adjustments for IME, DSH and wage index. Record the calculations in the grey sections and then answer the questions on the Questions tab.
ded33b658972bb311ce90fe9818fe444ef81b043.xlsx Charges $ 30,245.87 Charges $31,674.10 CCR 0.429 CCR 0.531 LOS 2 LOS 2 MS-DRG Reimbursment $ 15,576.88 MS-DRG Reimbursment $ 18,340.52 Cost of the encounter $ 12,975.48 Cost of the encounter $ 16,818.95 Profit/Loss $ 2,601.40 Profit/Loss $ 1,521.57 Hospital Community Hopsital Base Rate $6,200 4 Hospital Memorial Hospital Base Rate $7,300 9 MS-DRG 472 Cervical spinal fusion w CC MS-DRG 472 Cervical spinal fusion w CC RW 3.0415 RW 3.0415 Charges $ 30,384.64 Charges $35,384.57 CCR 0.429 CCR 0.531 LOS 3 LOS 3 MS-DRG Reimbursment $ 18,857.30 MS-DRG Reimbursment $ 22,202.95 Cost of the encounter $ 13,035.03 Cost of the encounter $ 18,789.21 Profit/Loss $ 5,822.27 Profit/Loss $ 3,413.74 Hospital Community Hopsital Base Rate $6,200 5 Hospital Memorial Hospital Base Rate $7,300 10 MS-DRG 001 MS-DRG 001 RW 27.6339 RW 27.6339 Charges $ 315,258.74 Charges $330,879.54 CCR 0.429 CCR 0.531 LOS 35 LOS 38 MS-DRG Reimbursment $ 171,330.18 MS-DRG Reimbursment $ 201,727.47 Cost of the encounter $ 135,246.00 Cost of the encounter $ 175,697.04 Profit/Loss $ 36,084.18 Profit/Loss $ 26,030.43 Heart transplant or implant of heart assist system w/MCC Heart transplant or implant of heart assist system w/MCC
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ded33b658972bb311ce90fe9818fe444ef81b043.xlsx Question Answer What is the definition of a CC/MCC? because it requires more resources than non-surgical cases. What can Memorial Hospital do to improve their profit? Which figure has the biggest impact in determining profit/loss for an admission; base rate or cost-to-charge ratio (CCR)? Why? Cost-to-charge ratio(CCR) because It determines the cost of the encounter. A higher CCR indicates that the hospital's costs are higher than its charges and can affect profit/loss. CCs are secondary conditions that have moderate SOI and impact on resource use. MCCs are secondary conditions that have a minor SOI and impact on resource use. How does the presence of a CC/MCC code impact the reimbursement for an admission? The presence of a CC/MCC code influences the severity of the patient's condition which results in an increase in resource consumption for admission and higher reimbursement rates. Why do surgical cases tend to have a higher relative weight (RW), and in turn payment, than medical cases?