cost/benefit analysis

What was developed in 1982 when the federal government instituted a payment system for medicare patients?

diagnostic related groups

What are diagnostic related groups?

services provided for hospital patients

What is a for-profit hospital?

large commercial systems

What are not-for-profit hospitals?

community based hospitals

What are examples of for profit hospitals in texas?

Methodist hospital, medical city, saint davids

What are examples of not-for-profit hospitals in texas?

Baylor scott, shriners, Covenant, university

What is a CPT?

current procedural terminology code

• used to bill

How are revenue projections compiled?

historical data, patient day forecasts, regulatory charges, growth projections

How do we get final approval for a laboratory decision?

summary, benefits, data, financials and interpretations

What is a billable procedure?

test billed to a payer

• like actual lab test on sample

What is a non-billable procedure?

a procedure that contributes to a test

• like QC, calibration

What is micro costing?

accounting for all expenses related to a test

• labor, supplies, interpretations

What is cost per reportable results?

cost of reagents and equipment needed to run the test

What are relative value units?

units that represent the complexity and time it takes to perform a test

The break even analysis is based on what principles?

costs increase, profits decrease

costs decrease, profits increase

volume increase, profits increase

volume decrease, profits decrease

What is the break even formula?

V = (FC + I) / (R - VC)

What are 5 areas of capital acquisitions?

cash flow

commitment buy in

cost time

tax impact

obsolescence risk-expected life cycle

What is the formula of ROI?

ROI = profit margin * assets turnover