Case Costing in a Single Community Hospital

Size is often immaterial when it comes to the challenge identifying and understanding its costs. The difficulty lies in collecting all relevant costs for a single patient over time because systems aren’t integrated.
Goal: The hospital wants to be able to get a handle on costs for individual patients or cost and profitability trends for specific patient types and services. It also wants consistent, accurate billing, an improvement in accounts receivable days and more expedited account reconciliation. Although the hospital staff spends hours trying to gather case data and input financial figures manually, this is a process wrought with inaccuracy and error.
Solution: With the Siemens Soarian and SAP Healthcare solution, this hospital could get ERP with business analytics, Web portals and a dashboard view into individual patient cases, including all associated costs for diagnosis, treatment and after-care. Data such as physician and nurse hours, material and medication consumption figures, surgical suite costs and even food expenses could be tracked easily and tabulated automatically. Comprehensive data from every hospital unit could be automatically updated on an ongoing basis so that financial tasks could be simpler and more accurate.
Benefits: The benefits in the case of a hospital such as this could be remarkable. Case costing, a business analysis task previously impossible to perform, could become a standard procedure. The reduction of error-prone, redundant paperwork could lead to a 50 percent decrease in transcription costs and a 50 percent decrease in phone calls to the pharmacy, saving manpower as well as money in a small hospital from 350 to 437 beds. It could also lead to a 1,000 Dollar savings per year, per physician due to better formulary compliance, and a 9percent to 25 percent increase in clinical productivity during a one-year period.*

Reduction of transcription costs: 50%

The reduction of error-prone, redundant paperwork could lead to a 50% decrease in transcription costs

*Source: PricewaterhouseCoopers ,„Reactive to Adaptive: Transforming Hospitals with Digital Technology“, März 2005, Seite 18.