Abstract
The Budgeting and Cost Analysis Department of Papageorgiou General Hospital created a new tool that utilizes real-time data and feedback from all clinics and departments and produces accurate reporting. The purpose of this tool is to calculate and predict the cost of medical services in a Diagnosis Related Group (DRG) oriented integrated environment. Data processing through Cost/Profit Centers produces and updates key economic and operational indicators (e.g. material and drug consumption, the average duration of hospitalization), which set the framework for the evaluation of clinics’ efficiency and performance. The revenues and expenses of each clinic and the deviations concerning the budget are monitored monthly. The reimbursement of health services based on the DRG system, depending on the medical procedures performed at each clinic, is regarded as revenue. On the other hand, cost analysis involves direct costs, and indirect costs which shape the cost of accommodation of hospitalization per day, estimated by algorithms and specific weighting factors. Thus, the operating cost of each clinic is calculated and then compared against its corresponding revenues. Papageorgiou General Hospital aims and pursues the further development of this budget monitoring tool, which is developed on the actual core health services of each clinic respectively. Fair reimbursement can be secured if data is linked to a dynamic, regularly updated data processing tool, i.e. accurate cost analysis & sourcing.
