KUSM-W logo

Quality Improvement - finances

KUMC logo
Login

Background

Implications of how health care delivery is financed
Implications of who pays for health care delivery
 

General questions

Baseline spreadsheet (for INR testing) (right-click to download to your desktop)
Question 1: How much revenue does the clinic make per month by doing 100 INRs per month before the QI intervention? (enter answers at http://ars.sumsearch.org) answer
Question 2: How much profit does the clinic make per month by doing 100 INRs per month before the QI intervention? (enter answers at http://ars.sumsearch.org) answer
We will revisit this scenario with a QI project in Scenario 2.
 

Scenario 1: Medicare vs private insurance

Baseline spreadsheet (same file as above) (right-click to download to your desktop)
Question 1: What does cell G31 mean?(enter answers at http://ars.sumsearch.org) answer
Question 2: What would happen to this clinic's monthly revenue if they stopped seeing MEDICARE patients and replaced these patients with the same number of patients funded with private insurance (hint: change cell G32 from 63% to 100%)? (enter answers at http://ars.sumsearch.org) answer
 

Scenario 2: Point-of-care INR testing

Baseline spreadsheet (same file as above) (right-click to download to your desktop)
Restore the proportion of patients with private insurance to 63%.
Effect on 100 patients before-after the intervention. Assumptions (already in spread sheet - add/remove their usage in yellow cells):
Before intervention
(Using venupuncture INR test
sent to outside vendor)
After intervention
(Using capillary INR test
that is CLIA-waived at the point-of-care)
  • Payment from patient for send-out test.
  • Payment from patient for point-of-care test.
  • Any other benefits? See question 2.
  • Payment to vendor (LabCorp): $2.15 per test
  • INR machine: $2500 spread over 5 years
  • Supplies $207.00 per box of 48
  • Personnel time: MA at 5 minutes per test
Question 1: What is the change in cost-revenue projection per 100 patients after implementing point-of-care INR testing? (enter answers at http://ars.sumsearch.org) answer
Question 2: What can be done to make this revenue neutral or positive for the clinic? (enter answers at http://ars.sumsearch.org) answer
Question 3: Does this scenario capture all financials? Are there non-financial benefits? (enter answers at http://ars.sumsearch.org) answer
Question 4: While this proposal improved chronic disease management and incentives the clinic to improve care, how does the cost to the patient change? (enter answers at http://ars.sumsearch.org)
 

Scenario 3: I hate writing office notes on the computer (workforce re-design)

Baseline spreadsheet (new file - > right-click to download to your desktop)
Effect on 100 patients per before-after the intervention. Assumptions (already in spread sheet - add/remove their usage in yellow cells):
Before intervention
(you, as provider, work the keyboard)
After intervention
(MA becomes scribe)

  • You no longer spend time documenting after the office visit.
  • You, as the provider, spend 15 minutes in the room with the patient (99213 visit).
  • You spend 10 minutes after each visit entering your note
  • You, as the provider, and the MA, spend 15 minutes in the room with the patient (99213 visit).
  • MA spends additional 10 minutes after each visit entering your note
  • You spend 1 minute after each visit reviewing the note after the scribe.
Question 1: What is the change in cost-revenue projection per 200 patients (per month or 10 per full day) after implementing a medical scribe? (enter answers at http://ars.sumsearch.org) answer
Question 2: What can be done to make this revenue neutral or positive (Hint: will the distribution of your E&M codes be able to change?) (enter answers at http://ars.sumsearch.org) answer
 

Scenario 4: Counseling for smoking cessation

Baseline spreadsheet (same file as scenario 3 - right-click to download to your desktop)
Add costs of counseling 100 patients. Assumptions (already in spread sheet - add their usage in yellow cells):
Question 1: What is the change in profit per 100 patients counseled when increased physician time is added (only change physician time for now)? (enter answers at http://ars.sumsearch.org) answer
Question 2: What can be done to make this revenue neutral or positive? (what are codes 99406 [G0436] and 99407 [G0437] on the spreadsheet). For their reimbursement, see CMS Physician Fee Schedule (look-up tool). (enter answers at http://ars.sumsearch.org) answer
Question 3: What is the cost to the patient (hint: see Preventive & screening services) (enter answers at http://ars.sumsearch.org) answer
Observation: You make more money by reading chest CTs for lung cancer screening. In cell H:20 of your spreadsheet, you are paid $25.90 for > 10 minutes of counseling. This is due to this being assigned 0.5 RVU per CMS Physician Fee Schedule (look-up tool). According to the same tool, to read a chest CT without contrast, you are paid $55 for 1.02 work RVU and 0.06 malpractice RVU.
 

Scenario 5: Changing perspectives - practicing in a financial-risk sharing environment

In these questions, assume you are in a global/capitated system in which the health care providers receive one payment per year to provide all health care to the enrollee.
Question 1: What is the cost to the system for one patient to quit smoking, assuming that of smokers who state they state ready to quit, 10% will actually quit) (enter answers at http://ars.sumsearch.org) answer
Question 2: What is the cost to give one quality adjusted life year (QALY), assuming that each smoker who quits receives an average of 2 QALYs. (enter answers at http://ars.sumsearch.org) answer
Question 3: Is it cheaper to give a QALY via smoking cessation or screening for lung cancer with CT (QALY estimate for lung cancer at PMID 25372087)? (enter answers at http://ars.sumsearch.org)
Question 4: If you were in charge of Kaiser or Group Health, which are examples of "non-fee-for-service", what would you do (hint: what happened to spending and quality of care when Massachusetts reformed payment - PMID 25354104)? Justify your answer. (enter answers at http://ars.sumsearch.org)
 

Scenario 6: How to increase revenue when payed with bundled payments?

Baseline spreadsheet (new file - > right-click to download to your desktop)
In managing septic shock, your hospital wants to pay for noninvasive monitoring of cardiac output to guide fluid therapy among patients with septic shock who have hearheart failure or end-stage renal disease. How can you finance the hardware and their maintenance?
Assumptions for 100 patients:
Question 1: How can you find capital to pay for the monitor(s)? (enter answers at http://ars.sumsearch.org) answer
 
Questions: rbadgett@kumc.edu