You are the HIM Director of a medium size hospital with 100 acute beds. You average about 450 monthly discharges with a case mix index (CMI) of 1.65. You have 2 fulltime inpatient coders, and o Clinical Documentation Improvement (CDI) professionals. Your CFO thinks that by implementing a CDI program at the hospital documentation the hospital will improve its CMI and will capture more comorbid conditions which will result in increased revenue to the hospital. 1. Research CDI programs and create a Request for Proposal (RFP) to send to possible vendors; include all items that you think are essential in a CDI product, research RFPs in the AHIMA body of knowledge and the textbook. Your RFP should at least contain a cover sheet, details about the project, and a deadline for submissions. RFPs should be well written, organized, and at least 3 pages 2. 90 days later, two vendors have responded to your RFP. The CFO needs you to create a memo comparing the 2 vendors. In your memo include an NPV calculation for the first 5 years. 1. The first one is Super MD Documenting (SMDD), which charges $100,000 upfront and a flat $20,000 at the beginning of every year (the rate is frozen for the first 5 years i.e. there are no increases). 2. The second one is Better Documenting for Better DRGs (BDBD), which charges $120,000 upfront and $10,000 for the first year with a 5% increase every year after. 3. With either project your CMI is expected to increase annually, adding an estimated $500,000 annually to the hospital's revenue. The CFO calculates that the risk free rate of return for the hospital is 3% and is expected to stay steady for the next 5 years. You are the HIM Director of a medium size hospital with 100 acute beds. You average about 450 monthly discharges with a case mix index (CMI) of 1.65. You have 2 fulltime inpatient coders, and o Clinical Documentation Improvement (CDI) professionals. Your CFO thinks that by implementing a CDI program at the hospital documentation the hospital will improve its CMI and will capture more comorbid conditions which will result in increased revenue to the hospital. 1. Research CDI programs and create a Request for Proposal (RFP) to send to possible vendors; include all items that you think are essential in a CDI product, research RFPs in the AHIMA body of knowledge and the textbook. Your RFP should at least contain a cover sheet, details about the project, and a deadline for submissions. RFPs should be well written, organized, and at least 3 pages 2. 90 days later, two vendors have responded to your RFP. The CFO needs you to create a memo comparing the 2 vendors. In your memo include an NPV calculation for the first 5 years. 1. The first one is Super MD Documenting (SMDD), which charges $100,000 upfront and a flat $20,000 at the beginning of every year (the rate is frozen for the first 5 years i.e. there are no increases). 2. The second one is Better Documenting for Better DRGs (BDBD), which charges $120,000 upfront and $10,000 for the first year with a 5% increase every year after. 3. With either project your CMI is expected to increase annually, adding an estimated $500,000 annually to the hospital's revenue. The CFO calculates that the risk free rate of return for the hospital is 3% and is expected to stay steady for the next 5 years
