1. Managing Your Departmental Budget September 24, 2014

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

3. 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

4. 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

5. Major Expense Categories

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

7. Labor Expense Management Other Departments should flex labor, too!

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

11. Cost Management Tools

12. Cost Control Log

13. Budget Control Sheet

14. Do you have any thoughts to share?

15. The End Questions