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Your hospital has been approached by a major HMO to perform all their MS-DRG 470 cases (major joint procedures). They have offered a flat price
Your hospital has been approached by a major HMO to perform all their MS-DRG 470 cases (major joint procedures). They have offered a flat price of $10,000 per case. You have reviewed your charges for MS-DRG 470 during the last year and found the following profile:
Average Charge | $15,000 | ||
Average LOS | 5 Days | ||
Routine Charge | $3,600 | Cost/Charge 0.80 | Variable Cost % 60 |
Operating Room | 2,657 | 0.80 | 80 |
Anesthesiology | 293 | 0.80 | 80 |
Lab | 1,035 | 0.70 | 30 |
Radiology | 345 | 0.75 | 50 |
Medical Supplies | 4,524 | 0.50 | 90 |
Pharmacy | 1,230 | 0.50 | 90 |
Other Ancillary | 1,316 | 0.80 | 60 |
Total Ancillary | $11,400 | 0.75 | 50 |
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