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Costing out nursing services based on acuity.

H L Rosenbaum¹, T M Willert, E A Kelly

¹Bureau of Medical Services, Iowa Department of Human Services, Des Moines.

The Journal of Nursing Administration

|July 1, 1988

Summary

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Nursing managers can use patient acuity systems to monitor costs and optimize staffing. This method helps estimate direct nursing care costs within diagnosis related groups (DRG) for reduced expenditures.

Area of Science:

Healthcare Management
Nursing Economics
Cost Accounting

Background:

Nursing departments are high-budget areas requiring cost monitoring.
Identifying cost-saving opportunities is crucial for financial efficiency.

Purpose of the Study:

To describe a method for determining direct nursing care costs.
To utilize patient acuity for cost estimation within Diagnosis Related Groups (DRG).

Main Methods:

Implementing an effective patient acuity system.
Linking patient acuity data to direct nursing costs.
Applying the method within a DRG reimbursement framework.

Main Results:

Patient acuity systems can efficiently determine appropriate staffing levels.

Related Experiment Videos

Acuity data enables accurate estimation of direct nursing costs.

This method supports cost reduction strategies in nursing.

Conclusions:

Patient acuity systems are valuable tools for managing nursing expenditures.
Accurate cost determination is essential for DRG reimbursement.
This approach facilitates financial accountability in nursing departments.