Managing Your Departmental Budget September 24, 2014

Revenue Sources Main Sources –Medicaid –Medicare –Private Pay –Insurance –MSHO

Medicaid States set the rate –Most States, payments do not cover expenses –ND is cost-based reimbursed –Rate equalization in MN and ND Pays for semi-private room –Some allowances for private room reimbursement

Medicare Set by Federal Government Includes therapies, lab, x-ray, pharmacy Premium Payer –Provides a Margin Does not pay for private room Length of Stay (LOS) –20-25 days typical

Major Expense Categories

Labor Expense Management Nursing Labor – Flexing hours –Adjusting for Census and Case Mix

Labor Expense Management Other Departments should flex labor, too!

Non-Salary Expense Management Supplies –Food –Nursing Supplies –Linens Purchased Services Other

Cost Management Tools

Cost Control Log

Budget Control Sheet

Do you have any thoughts to share?

The End Questions