Lab budgeting and cost accounting under DRGs
Medical Laboratory Observer, Feb, 1985 by W. Glenn Cannon
Cost accounting is not a solution to management problems. It is a management tool designed to provide information that facilitates sound decisions. The two primary objectives of cost accounting are 1) to match cost with revenue and 2) to match resource consumption with the units of service provided.
Under the DRG system, matching revenue with cost and evaluating appropriate utilization levels must be done on a patient-by-patient or case-by-case basis. These are hospital management functions. Overutilization of services for a patient will drive costs above the level of the fixed payment rate for a particular diagnosis.
Since the
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Each laboratory section will probably have its own set of PMUs. For example, microbiology is heavily manual while chemistry is highly automated, and their outputs cannot be measured in the same manner. In selecting a reasonable PMU, consider the following criteria:
1. It is the single factor that most clearly causes resource consumption to vary. Note that this must relate to consumption--the use of labor and materials, and instrument costs--not to what the laboratory has been charging for a test.
2. It must be measurable and easily understood by laboratory personnel. If the staff cannot understand the PMUs, the system won't be effective.
3. It must be affected only by volume changes.
Laboratories have an advantage over other areas of health care through a long history of using CAP units as a statistical measure for volume. CAP units, however, may fall short when used to measure resource consumption. Some observers argue that workload recording relates quite well to labor consumed but may cause distortion in highly automated labs.
PMU measurements must be accurate, indicating the relative weight of each procedure in comparison with other procedures. The tabulation method should also be capable of summarizing PMUs by patient.
* Natural expense classifictions are used in grouping costs,
2. Use this Lab Report template for all of your labs. Do not turn in separate documents for each lab or create your own document! Each lab is easily identified within this document. Note: It is a good idea to read over this template before performing your labs, so that you know what to expect.
This introduction is also often referred to as the ‘purpose’ or ‘plan’ section. It should
Managerial accounting is essential for decision making. Making the best choice depends on the manager's goals, the anticipated results from each alternative, and the information available when the decision is made (Schneider, 2012). The different techniques associated with managerial accounting are very helpful in the decisions that need to be made. In order to truly understand decision making with managerial accounting one must first discern exactly what managerial accounting means and some of the techniques associated with it. The definition of managerial accounting will be discussed along with the techniques of cost management techniques, budgeting, and quality control.
Generate test submissions. Validate that the test submission data is accurate. Does the data meet the MIPS measure’s needs? Are all the correct data elements in place? Prepare contingencies. How will you find missing data or make
The LIMS can store text and graphical documents and can use the data to produce relevant information such as investigation results. It can also be used to monitor good laboratory practice by, for example, monitoring sample collection, testing, quality assurance and outgoing results.
The second step is the major diagnostic category determination in which the principal diagnosis is assigned to an encounter for one of the 25 MDCs (Casto & Forrestal, 2015). The 3rd step is the medical/surgical determination to determine whether a procedure was performed and can be assigned a surgical status (Casto & Forrestal, 2015). The MS-DRG Definitions Manual and many of ICD codebooks verifies which procedures are valid or not valid (Casto & Forrestal, 2015). For example, minor procedures and testing do not qualify (Casto & Forrestal, 2015). Also, when a qualifying procedure is not performed, the case is assigned a medical status (Casto & Forrestal, 2015). The fourth step involves using different refinement questions to figure out the correct MS-DRG assignment (Casto & Forrestal, 2015). Therefore, once the medical and surgical classification groups for an MDC are formed, each class of patients is evaluated to determine if complications, comorbidities, the patient’s age or discharge status consistently affected the use of hospital resources (Design and Development,” n.d.).
During the lab experiences, you will conduct a series of physical exams that includes the following systems.
The purpose of this lab was for the student to get involved with his or hers new lab kit as well as being able to know, identify and use each other tools provided in the kit. Another key learning aspect of this lab is to teach the student how to measure properly the many units in the SI system. I will be using laboratory dilutions, measurements, and weights to then calculate using algebraic formula.
Your team will write a three-page executive summary of the actions taken during your tenure. This report will explain your reasoning for the decisions made and it will provide a retrospective assessment of their effectiveness. You must show analysis to justify your conclusions and make recommendations that would improve laboratory performance in similar
Cost accounting is a type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step of production as well as fixed costs such as depreciation of capital equipment. Cost accounting will first measure and record these costs individually, then compare input results to output or actual results to aid company management in measuring financial performance (Cost Accounting, n.d.).
of being able to analyze multiple samples in a short amount of time. The most efficient way of determining concentration is to prepare a set of standard solutions of known
The need for adequate facilities and trained personnel to follow approved procedures for sampling and testing materials.
For this piece of assignment, a cash budget will be made for Doomy Corporation for the second quarter of the year. For this budget, all the sales figures for the second quarter and some of the expenditure have been given. Hence, to prepare a cash budget, the sales figure given will be used and some calculations will be worked out in order to fully prepare an outstanding budget for Doomy Corporation the following information will be used efficiently.
Cost accounting is concerned with cost and therefore is necessary to understand the meaning of term cost in a proper perspective.
For generating valuable data with a desired accuracy and to quantify concentration of the constituents present in the samples being analyzed.