Sax Hospital is a 300-bed community hospital. It is affiliated to the local health authority which is reducing the DRG fees to reimburse hospital services. Over the last years, the healthcare environ has become dynamic. Most hospitals control the use of inpatient ancillary services, reduce average lengths of stay, and increase patient volume, both for inpatient and outpatient services. Sax hospital is structured around three main divisions - surgery, medicine, and pediatrics. The hospital budgeting and control system is built around key cost drivers, among which volume, case I patient needs, efficiency, and wages and prices stand out. To reach a financial sustainability, the budgeting process

Case history (36% of final mark) Sax Hospital is a 300-bed community hospital. It is affiliated to the local health authority which is reducing the DRG fees to reimburse hospital services. Over the last years, the healthcare environm has become dynamic. Most hospitals control the use of inpatient ancillary services, reduce average lengths of stay, and increase patient volume, both for inpatient and outpatient services. Sax hospital is structured around three main divisions - surgery, medicine, and pediatrics. The hospital budgeting and control system is built around key cost drivers, among which volume, case patient needs, efficiency, and wages and prices stand out. To reach a financial sustainability, the budgeting process has been reinforced. To begin the budget process, the divisions are supplied with reports containing information on revenues and expenses services. These reports calculate revenue and costs, segmented by DRGS, in varying levels of det The ancillary departments, such as the laboratory and the radiology, participate in the process. The budget has been built around standard costs. The budgeted targets of DRG-1001 are detailed in Exhibit 1, with respect to the first quarter. The results of the same DRG for the first quarter are shown in Exhibit 2. Exhibit 1 - Budgeted targets of DRG-1001 (First quarter, 2022) lumber of cases 1,000 Revenue per case $ 5,900 outine care Total budgeted days 2,500 Budget expense per day $ 150 adiology Budgeted films per case 6 Budgeted expense per film $ 60 erating room Budgeted operating room hours per case 3 Budgeted expense per operating room hour $ 500 rmacy Budgeted units per case 20 Budgeted expense per unit $ 20