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Identifying costs for capitation in psychiatric case management
J J Baker1, P Chiverton, V Hines
1Case Western Reserve School of Nursing, USA.
Journal of Health Care Finance
|March 21, 1998
Summary
This study demonstrates how a hospital calculated capitation costs for psychiatric case management using activity-based costing. Data was collected over 18 months for nurses and patients in a pilot project.
Area of Science:
- Healthcare Management
- Health Economics
- Psychiatric Nursing
Background:
- Capitation models require accurate cost identification for financial sustainability.
- Psychiatric case management involves complex patient needs and resource utilization.
- Previous cost identification methods may not fully capture the nuances of specialized care.
Purpose of the Study:
- To illustrate a practical approach for determining capitation costs in psychiatric case management.
- To present findings from an 18-month pilot project on postacute psychiatric care.
- To apply activity-based costing for granular cost analysis.
Main Methods:
- Implemented an 18-month postacute case management pilot project.
- Collected data on a nurse-specific and patient-specific basis.
- Utilized activity-based costing (ABC) methodology for cost identification.
Main Results:
- Detailed cost data was successfully gathered for psychiatric case management.
- Activity-based costing provided a clear breakdown of expenses.
- The pilot project yielded insights into cost drivers for capitation.
Conclusions:
- Activity-based costing is a viable method for identifying psychiatric case management costs.
- Accurate cost data is crucial for effective capitation-based financial planning.
- This approach can inform resource allocation and improve financial performance.