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Related Experiment Videos

Repricing plan yields realistic revenue enhancement.

J G Pickard, R A Friedman, T J Johnson

    Healthcare Financial Management : Journal of the Healthcare Financial Management Association
    |April 9, 1991
    PubMed
    Summary

    Hospital reimbursement strategies are key to financial health. Modifying charges to boost revenue and cash flow, rather than across-the-board rate setting, is more effective. A collaborative approach involving hospital leaders and physicians shows promise.

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    Area of Science:

    • Health Services Research
    • Hospital Financial Management

    Background:

    • Traditional hospital reimbursement models often rely on across-the-board rate setting.
    • This approach may not optimize net operating revenue or cash flow.
    • Contractual allowances can increase under outdated reimbursement policies.

    Purpose of the Study:

    • To evaluate the impact of hospital rate restructuring on financial performance.
    • To explore alternative strategies beyond across-the-board rate setting.
    • To identify effective approaches for enhancing hospital revenue and cash flow.

    Main Methods:

    • Analysis of hospital financial data related to reimbursement and revenue.
    • Comparison of outcomes between across-the-board rate setting and modified charge strategies.

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  • Case study of hospitals implementing participatory approaches.

    • Main Results:

    • Modifying charges to positively impact the hospital's bottom line is more effective than across-the-board rate setting.
    • This strategy can generate net operating revenue and increase cash flow.
    • Reduced increases in contractual allowances are associated with modified charge strategies.

    Conclusions:

    • Hospital rate restructuring focused on actual reimbursement is crucial for financial stability.
    • A shift from across-the-board policies to charge modification enhances financial outcomes.
    • Participatory approaches involving executives, managers, and physicians are effective in implementing these changes.