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41 Cards in this Set
- Front
- Back
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Direct expenses and examples
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Directly associated with production of services
Most everything in private practice falls into this category Salaries, benefits, supplies, equip |
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Indirect expenses and examples
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Costs incurred by the org. that can't be dircectly associated with the production of services
Allocated to dept's as shared overhead in terms of sq. footage, volume of services Laundry, parking administartion costs, grounds mainteneace |
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Fixed costs and examples
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Remain the same no matter the volume of pts that you see
Rent, salaries, benefits |
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Variable costs and examples
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Vary depending on volume of pts seen
Laundry - more with greater volume |
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Explain how productive in terms of hrs/day and units/day a PT should be
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18-20 units/day if 8 hr day
6.5 or 7 hrs/day where we generate units of service (This will NEVER happen in real life) |
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AVERAGE: units/patient and cost of a unit that we are billing
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3
$45 |
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When trying to figure out revenue, what must we consider?
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Number pts, number of units, average cost of units
Allow for deductions - claims that don't get paid in full (medicare, HMOs) |
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Laundry list of direct expenses
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Salaries, benefits, FICA
Education, recruitment Professional service Purhcased services and supplies Travel, dues, equipment, rent, utilities |
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Percentage of our salary that equals are benefits
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18%
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Highest and second highest expenses for PT clinci
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Personnel
Rent/facilities |
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FTE
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Full time employee = 2080 hrs (40 * 52)
1.0 can be split between ppl |
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UOS/day
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Units of service/day
3 * 8 = 24 |
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Patient/payer mix - what do we need to figure out?
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ie. Medicare is 33% of revenue and they get a 30% discount
Medicaid, HMO, commercial, self pay all have their own percentages of what they actually pay |
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What can we do if we are losing money?
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Raise prices
Look at payer mix and increase the number of self-pay or HMOs, and dec medicaid May just have to say fuck medicare/medicaid |
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How do we set charges?
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Look at cost of providing service, and be able to say that it cost us ____ amt of money to provide this service, and we make 10-15% profit
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Benefits ar what % of salary?
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18-35%
Tax free |
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What is included in PTO
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Sick days, personal days, vacation
Usually 2 weeks |
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Other benefits you may receive or offer
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Life and dental
Subsidized child care Tax-defererd savings plan Retirement plan Paid or subsidized education |
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What must you consider when asking for more equipment
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Does it make our tx for effective?
Will it improve outcomes? Will I make more money? |
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Schedule of charges
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What facility charges pt
Eval, individ tx Should have published statement |
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Why do we need a depreciation schedule?
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B/c it will need to be replaced, and we need to plan ahead and have money available when it is time to purchase the equipment
Charge it against our budget like a real expense |
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M and O budget
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A budget that we have... so when we need something, we spend it, like furniture
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Chart of Accounts.. common 5
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Designation to let us know where something belongs
Categories we have expenses in 1. assets 2. liabilities 3. capital accounts 4. revenue accounts 5. expense accounts Lets you know how much you're spending or bringing in under a specific category |
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Cash balace
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Cash in the bank
Petty cash we have in clinic for change for co-pays |
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Sources of cash
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Cash from operations
Accounts receivable Owner investments |
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Uses of cash
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Accounts payable (money I owe)
Payroll Owner withdrawl Capital purchasing Land and building |
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Cash Flow Statement - why do we ened it?
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Cash balance, sources of cash, uses of cash
Creditors will ask for this shit when we ask for money Shareholders want this info before investing |
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Balance sheet
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Assets and liabilities must be equal!
"owner's equity" |
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Productivity schedule: How many units of service/year are we expected to get?
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5688
This chart can be used to determine what revenue we would expect to earn in a specific practice Units of service/day * 5 days/week * 52 weeks/year |
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How do we determine financial productivity for a PT?
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What are hours I pay this person for? 2080 hrs
Take into account PTO Take into account billed hours (6.5/8 hrs in a day) Take into account resource cost: compensation, benefits, FICA, education, etc |
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Position cost/UOS
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Each unit of service we pay PT must cost less than what we are actually receiving/UOS
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How do we calculate Non-productive hours for PT
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2080 hours minus PTO and time not providing pt care
ie. 6.5 hours/day b/c other 1.5 hr is documenting/calling docs |
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Purpose of outcomes management?
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Measure the effectiveness and efficiency of the process in conjunction with the resources used
Efficiency i s related to cost of tx |
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Factors important to measure for outcomes management
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Technical or fxt skills
Patient satisfaction Cost |
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Goals of outcome management
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IMprove practice
Document results for marketing purposes (we do this greeat) Examine and document patterns of practive to identify most effective and cost-efficient time for pt to be there Utilize info in daily clinical and business decision-making (figure out why PT's producitivty sucks) |
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What is Clinical Performance Outcomes? Examples
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REsults in terms of pt's level of recovery or function as a result of intervention
FIM, FOTO, Oswestry, MAS, Fugal-Meyer Tells you how effective tx was |
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What do clinical performance outcome scales require?
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Adequate measurement and documentation of pt at baseline
Adequate description and standardization of the intervention (ie. critical pathways: something each pt should be checked for) Adequate measurement of pt after interventon |
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What is quality assurance? How do we do it?
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Tries to lin what we do with the outcomes that we achieve
ie. retrospective chart pulling to assure it tx was done correctly Concurrent chart audit - Look at documentation and identify critical pathways. Used to make sure pt receives proper tx |
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Recommended items for quality assurance
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Billing accuracy
Convnience of service times costs of service courtesy of staff and PT Ease of making appt's Privacy respected |
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Key factors relating to Pt satisfaction?
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Communication on progress
Consistency Respect for autonomy Respectful attention Understanding |
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Items to consider for determining financial performance
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Volume of pts
Number of referral sources Cancellations Case mix Productivity Diagnoses in % How long charges are sitting in accounts receivable |
