MS-DRG Calculations Ex 202022 Ch 5 $$$$$$
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Finance
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Feb 20, 2024
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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?
Related Questions
provide correct answer and provide correct option with calculation I want it so please provide
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J. Explanation of Benefits
XYZ Insurance Company Explanation of Benefits
Walden-Martin Family Medical Clinic
1234 Anystreet
Anytown, AK 12345-1234
Patient Treatment CPT
Name
Dates
Code
Yan, Tai 01/06/20XX (99205
01/06/20XX
01/06/20XX
Totals
Gomez, 01/07/20XX
Pedro
Totals
82947
86580
99212
*
Amount
Charge Reason Covered Deductible Co-Pay
Code Amount Amount Amount Paid At
132.28
03
15.00
11.34
158.62
28.55
28.55
70.92
01/04/20XX 71020
Totals
Green, 01/04/20XX 99203
Jana
40.97
111.89
Reason Code: 03 Allowed amount per insurance contract
03
03
125.00
15.00
11.34
151.34
28.55
28.55
69.23
34.95
104.18
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Copyright © 2020, Elsevier Inc. All Rights Reserved.
80%
80%
80%
0.00 80%
0.00 80%
0.00 80%
01/20/20XX
Payment
Amount
100.00
12.00
9.07
121.07
22.84
22.84
55.38
27.96
83.34
Check No: 56390 $227.25
Using the explanation above answer the following questions:
1. For Tai Yan's office visit, 99205, there is a difference between the Charge Amount and…
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H3.
Sacramento Memorial Hospital has the following financial data and operational metrics: Number of beds--> 250 Total inpatient stays--> 12,250 Total outpatient visits--> 90,754 Total patient revenues--> $111,900,050 Outpatient mix--> 16.2% Medicare payment percentage(revenues)--> 28.0% Average length of stay--> 5.8 days Net price per discharge--> $7,653 Cost per discharge--> $6,292 f. What is the hospital’s occupancy rate? (Hint: Start by calculating available bed days.)
Show proper step by step calculation
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(CO B) What percent of revenue do for-profit hospitals deliver in uncompensated care?
O3%-4%
O 10%
15%-20%
None
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pls solve this ques in 10-15 minutes I'll give you multiple upvotes.
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Table 7. Twenty leading principal reasons for outpatient department visits: the United States, 2009
All visits ... 96,132 Progress visit, not otherwise specified:9,052 General medical examination: 5,762 Cough: 2,638 Counseling, not otherwise specified: 2,550Prenatal examination, routine: 2,410 Medication, other and unspecified kinds: 2,282 Symptoms referable to throat: 1,773 Back symptoms : 1,630 Postoperative visit: 1,593 Diabetes mellitus : 1,568 Fever: 1,341 Knee symptoms: 1,331 Earache or ear infection: 1,326 Stomach pain, cramps and spasms: 1,231 Well-baby examination: 1,198 Headache, pain in head: 1,091 Low back symptoms: *1,078 Hypertension: 1,078 Skin rash: 1,053
Gynecological examination: 1,032 All other reasons ... 53,115
Table 9. Twenty leading principal reasons for office visits, by patient’s sex: the United States, 2018The principal reason for the visit All visits . . . . .860,386 (37,935) Progress visit, not otherwise specified . . . 151,669General medical…
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Q4-
The following information is extracted from Gamma Hospital's financial records.
Patient accounts receivable, net
Patient service revenue, gross
Provision for contractual adjustments
14,000,000
97,000,000
12,000,000
Required:
Compute the number of days' revenue in patient accounts receivable.
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14. You have a 70/30 medical insurance policy with a $1,500
premium and a $800 deductible. You have medical expenses totaling
$3,600. What is the cost to the insurance company for the loss?
$1,605
$1,960
$2,100
$2,850
5:
C
lo
nir
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Please don't provide solutions image based thanx
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Assume that Valley Forge Hospital has only the following three payer
groups:
Number of
Average Revenue
Variable Cost
Admissions
per Admission
per Admission
Commercial
1,000
$5,000
$3,000
PennCare
4,000
4,500
4,000
Medicare
8,000
7,000
2,500
The hospital's fixed costs are $38 million.
a. What is the hospital's net income?
b. Assume that half of the 100,000 covered lives in the commercial
payer group will be moved into a capitated plan. All utilization and
cost data remain the same. What PMPM rate will the hospital have
to charge to retain its Part a net income?
c. What overall net income would be produced if the admission rate
of the capitated group were reduced from the commercial level by
10 percent?
d. Assuming that the utilization reduction also occurs, what overall
net income would be produced if the variable cost per admission
for the capitated group were lowered to $2,200?
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Can you please check my work
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7
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215T 55209796/chapter/6/section/1
ntitative Reasoning I home > 6.1: Personal finance
E zyBo
Monthly, Val's net earnings are $4,500, and expenses are $4,000. How much
should Val have in savings for a 3-month emergency fund?
$ Ex: 12345 :
2.
Check
Next
Provide feedback
assignment: Wk 5 - Readings and Assignments [due Mon]
EST
29/1
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According to the Government Accountability Office, fraud and abuse account for nearly.
health care.
Multiple Choice
о
O
O
O
10%
11%
15%
20%
25%
Home
percent of all dollars spent on
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Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start-
up company.
What amount of child and dependent care credit can Julie claim in 2021 in each of the following alternative scenarios? Use
Exhibit 8-10
b. Julie paid $5,650 to the day care center and her AGI is $52,600 (all salary).
Child and dependent care credit
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QUESTION 12
Abeer has a major medical pblicy with a 5200o deductible. She is required to pay 25 percent of covered expenses in excess of the deductble. The insurer will pay 75 percent of
expenses in excess of the deductble. f Abeer has eligible medical expenses of $10.000. how much will be pad by her insurer?
Da57.300
Ob. $7.500
C S0.800
Cd. $7.350
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NOT A GRADE THIS IS A STUDY GUIDE.
Only need help on Part III
Goal is to save for a Prius
Gross monthly income and net monthly income provided
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- provide correct answer and provide correct option with calculation I want it so please providearrow_forwardJ. Explanation of Benefits XYZ Insurance Company Explanation of Benefits Walden-Martin Family Medical Clinic 1234 Anystreet Anytown, AK 12345-1234 Patient Treatment CPT Name Dates Code Yan, Tai 01/06/20XX (99205 01/06/20XX 01/06/20XX Totals Gomez, 01/07/20XX Pedro Totals 82947 86580 99212 * Amount Charge Reason Covered Deductible Co-Pay Code Amount Amount Amount Paid At 132.28 03 15.00 11.34 158.62 28.55 28.55 70.92 01/04/20XX 71020 Totals Green, 01/04/20XX 99203 Jana 40.97 111.89 Reason Code: 03 Allowed amount per insurance contract 03 03 125.00 15.00 11.34 151.34 28.55 28.55 69.23 34.95 104.18 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Copyright © 2020, Elsevier Inc. All Rights Reserved. 80% 80% 80% 0.00 80% 0.00 80% 0.00 80% 01/20/20XX Payment Amount 100.00 12.00 9.07 121.07 22.84 22.84 55.38 27.96 83.34 Check No: 56390 $227.25 Using the explanation above answer the following questions: 1. For Tai Yan's office visit, 99205, there is a difference between the Charge Amount and…arrow_forwardH3. Sacramento Memorial Hospital has the following financial data and operational metrics: Number of beds--> 250 Total inpatient stays--> 12,250 Total outpatient visits--> 90,754 Total patient revenues--> $111,900,050 Outpatient mix--> 16.2% Medicare payment percentage(revenues)--> 28.0% Average length of stay--> 5.8 days Net price per discharge--> $7,653 Cost per discharge--> $6,292 f. What is the hospital’s occupancy rate? (Hint: Start by calculating available bed days.) Show proper step by step calculationarrow_forward
- (CO B) What percent of revenue do for-profit hospitals deliver in uncompensated care? O3%-4% O 10% 15%-20% Nonearrow_forwardpls solve this ques in 10-15 minutes I'll give you multiple upvotes.arrow_forwardTable 7. Twenty leading principal reasons for outpatient department visits: the United States, 2009 All visits ... 96,132 Progress visit, not otherwise specified:9,052 General medical examination: 5,762 Cough: 2,638 Counseling, not otherwise specified: 2,550Prenatal examination, routine: 2,410 Medication, other and unspecified kinds: 2,282 Symptoms referable to throat: 1,773 Back symptoms : 1,630 Postoperative visit: 1,593 Diabetes mellitus : 1,568 Fever: 1,341 Knee symptoms: 1,331 Earache or ear infection: 1,326 Stomach pain, cramps and spasms: 1,231 Well-baby examination: 1,198 Headache, pain in head: 1,091 Low back symptoms: *1,078 Hypertension: 1,078 Skin rash: 1,053 Gynecological examination: 1,032 All other reasons ... 53,115 Table 9. Twenty leading principal reasons for office visits, by patient’s sex: the United States, 2018The principal reason for the visit All visits . . . . .860,386 (37,935) Progress visit, not otherwise specified . . . 151,669General medical…arrow_forward
- Q4- The following information is extracted from Gamma Hospital's financial records. Patient accounts receivable, net Patient service revenue, gross Provision for contractual adjustments 14,000,000 97,000,000 12,000,000 Required: Compute the number of days' revenue in patient accounts receivable.arrow_forward14. You have a 70/30 medical insurance policy with a $1,500 premium and a $800 deductible. You have medical expenses totaling $3,600. What is the cost to the insurance company for the loss? $1,605 $1,960 $2,100 $2,850 5: C lo nirarrow_forwardPlease don't provide solutions image based thanxarrow_forward
- Assume that Valley Forge Hospital has only the following three payer groups: Number of Average Revenue Variable Cost Admissions per Admission per Admission Commercial 1,000 $5,000 $3,000 PennCare 4,000 4,500 4,000 Medicare 8,000 7,000 2,500 The hospital's fixed costs are $38 million. a. What is the hospital's net income? b. Assume that half of the 100,000 covered lives in the commercial payer group will be moved into a capitated plan. All utilization and cost data remain the same. What PMPM rate will the hospital have to charge to retain its Part a net income? c. What overall net income would be produced if the admission rate of the capitated group were reduced from the commercial level by 10 percent? d. Assuming that the utilization reduction also occurs, what overall net income would be produced if the variable cost per admission for the capitated group were lowered to $2,200?arrow_forwardCan you please check my workarrow_forward7arrow_forward
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