1. Capturing Misallocated Charges
Departments
4PICU
4PEDS
Project Team
Mike McCormick Service Coordinator
Kristi Milam RN
Cindi Laporte Nurse Manager

2. Opportunity
In 2005 misallocated charges to the Pediatrics and the Pediatric ICU floors totaled $88,000.
These are costs that should be allocated by staff to particular patients yet have been charged to the unit.
These costs directly reduce the units budget to purchase other items.
Goal: To decrease the current year’s floor charges to 15% of the previous year’s.

3. January 2006 Floor Charges

4. Promoting Awareness
Detailed posters were created to show the severity of the problem.
Showing each staff members floor charge totals.
Other posters were made to inform the staff of the necessity of charging individual patients for items.
Signs were posted on omnicells to remind staff to avoid entering floor charges.
Signs were created to show progress.

5. Pediatrics and Pediatric Intensive Care Unit
Floor Charges
Pediatrics and Pediatric Intensive Care Unit
$12,000
$10,000
$8,000
Total Misallocated Charges
$6,000
Changed how totals were calculated
UCL = 4726
$4,000
$2,000
Target = $1,100 $0
Jan-05
Feb-05
Mar-05
Apr-05
May-05
Jun-05
Jul-05
Aug-05
Sep-05
Oct-05
Nov-05
Dec-05
Jan-06
Feb-06
Month

6. Results of Quality Initiative
The average monthly floor charges since March 2006 have decreased to $612.
This totals to a 92% decrease in total floor charges
If these results were achieved hospital wide they could create 1.42 Million dollars per year in increased charges. (635 thousand not including ER)
Or an approximate savings of $80,652 per year.
This quality project has seen continuous improvement. There has been a noticeable downward trend in the monthly floor charges.

7. January 2007 Floor Charges

8. Next Steps
Continue to have one on one in-service’s with the people who are responsible for misallocated charges.
Floor charges to the staff member responsible for them.
Work to maintain the reduction that we have currently achieved, as well as continue to reduce misallocated charges.