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Converting nursing care cost to revenue.
1St. Mary's Hospital, Leonardtown, Maryland.
The Journal of Nursing Administration
|May 1, 1989
Summary
This study details a system for charging nursing services by calculating costs and separating them from room rates. This transforms nursing units into revenue centers, improving budget justification and contract negotiation.
Area of Science:
- Healthcare Management
- Nursing Economics
Background:
- Traditional hospital room rates often obscure the actual cost of nursing care.
- Accurate cost allocation is crucial for financial sustainability in healthcare.
Purpose of the Study:
- To present a methodology for establishing a distinct charge for nursing services.
- To enable nursing departments to function as revenue-generating centers.
Main Methods:
- Determining the precise cost of nursing services.
- Extracting nursing charges from the consolidated room rate.
Main Results:
- Nursing units become identifiable revenue producers.
- Facilitates negotiation of managed care contracts.
- Provides a basis for justifying budgets and staffing levels.
Conclusions:
- Separating nursing charges enhances financial transparency.
- Empowers nursing services to be recognized as a revenue-generating entity.
- Eliminates subjective perceptions of nursing care costs.