Per-minute charge system: defining a plan

Area of Science:

• Healthcare Management
• Hospital Operations
• Financial Administration

Background:

• Accurate cost capture is crucial for hospital financial health.
• Traditional chargemaster systems may not reflect true service costs.
• Transparency in pricing is increasingly demanded by stakeholders.

Purpose of the Study:

• To evaluate the impact of a per-minute surgical services chargemaster.
• To assess improvements in operating margins and price defensibility.
• To determine the effect on productivity analysis capabilities.

Main Methods:

• Overhauled surgical services chargemaster.
• Implemented a per-minute charge capture system.
• Analyzed financial and operational data post-implementation.

Main Results:

• Achieved improved operating margins.
• Established more transparent and defensible pricing.
• Enabled enhanced productivity analysis.

Conclusions:

• A per-minute billing system effectively aligns hospital costs with charges.
• This model enhances financial transparency and operational efficiency.
• It provides a robust framework for cost management and productivity assessment.