Quiz 9 Review

The HIM department and the business office of Community Hospital would like to merge their funds to purchase an industrial shredder. Currently, an outside vendor comes in and shreds old documents twice a month at the cost of $27,000.00 per year. The hospital requires a payback period of four years. The department's return on investment (ROI) must be a minimum of 25 percent. The total cost of the shredder that the department would like to purchase is $8,509.00. Taking into consideration time, manpower, and the cost of running the equipment, the savings would be $2,123.00 per year. Round to two decimal places. Calculate the payback period: _________________ Calculate the return on investment: _______________ Would the shredder come out of the operational budget or the capital budget? With the information above taken into consideration, should the shredder be purchased?

1. Calculate the payback period: _________________ Answer: $8,509 / $2,123 = 4.01 years 2. Calculate the return on investment: _______________ Answer: ($2,123 × 100) / $8,509 = 24.95% 3. Would the shredder come out of the operational budget or the capital budget? Capital budget 4. With the information above taken into consideration, should the shredder be purchased? No because it does not meet the hospital payback period and the minimum ROI required.

A full-time (40 working hours) employee makes $18.00 an hour. What would that employee's weekly and yearly salary be? Yearly: _________________ Weekly: ________________ What would the total annual compensation be if the base benefit was 30%? ___________

A full-time (40 working hours) employee makes $18.00 an hour. What would that employee's weekly and yearly salary be? Yearly: _________________ Answer: $18.00 × 2,080 = $37,440 Weekly: ________________ Answer: $37,440 / 52 = $720.00 per week What would the total annual compensation be if the base benefit was 30%? ___________ Answer: $37,440 × 0.30 = $11,232 $37,440 + $11,232 = $48,672

Community Hospital Top Five MS-DRGs All Financial Categories January 20XX MS-DRG Title No. of Disch. Relative Weight 293 Heart failure & shock w/o CC/MCC 56 0.6762 066 Intracranial hemorrhage or cerebral infarction w/o CC/MCC 14 0.7530 470 Major joint replacement or reattachment of lower extremity w/o MCC 13 2.1137 195 Simple pneumonia & pleurisy w/o CC/MCC 10 0.7044 192 Chronic obstructive pulmonary disease w/o CC/MCC 8 0.7190 Community Hospital reported that their base payment rate from CMS is $3,500. Calculate the estimated payment for each of the top five MS-DRG in the table above using the hospital's base rate. Round to whole numbers.

MS-DRG 293: 0.6762 × $3,500 = $2,367 MS-DRG 066: 0.7530 × $3,500 = $2,636 MS-DRG 470: 2.1137 × $3,500 = $7,398 MS-DRG 195: 0.7044 × $3,500 = $2,465 MS-DRG 192: 0.7190 × $3,500 = $2,517

Miss Black is an inpatient coder who codes 40 hours per week. On the average she codes seven records an hour. She earns $17.00 per hour. Miss Green is an inpatient coder who codes 40 hours per week. On the average she codes six records an hour. She earns $14.50 per hour. The HIM manager is planning her budget and wants to add a 20% benefit to each of these two coders. What should she plan as a total package (salary plus benefits) to Miss Black and Miss Green? Miss Black ________________ Miss Green ________________

Miss Black $35,360 × 0.20 = $7,072 $35,360 + $7,072 = $42,432 Miss Green $30,160 × 0.20 = $6,032 $30,160 + $6,032 = $36,192

Miss Black is an inpatient coder who codes 40 hours per week. On the average she codes seven records an hour. She earns $17.00 per hour. Miss Green is an inpatient coder who codes 40 hours per week. On the average she codes six records an hour. She earns $14.50 per hour. Who has the lower unit cost per record?

Miss Green

Miss Jones is a full-time data analyst and makes $19.00 per hour. On average, she analyzes 60 records per day. What is her yearly salary? __________________ How many records does she analyze per week? _________ How many records does she analyze each year? ____________ Using the information that you have previously calculated for Miss Jones, what is the unit labor cost per record? Round to a whole cent. _______________________

Miss Jones is a full-time data analyst and makes $19.00 per hour. On average, she analyzes 60 records per day. What is her yearly salary? __________________ Answer: $19.00 × 2,080 = $39,520 How many records does she analyze per week? _________ Answer: 60 × 5 days = 300 per week How many records does she analyze each year? ____________ Answer: 300 per 52 weeks = 15,600 per year Using the information that you have previously calculated for Miss Jones, what is the unit labor cost per record? Round to a whole cent. _______________________ Answer: $39,520 / 15,600 = $2.53 cost per record

A small critical care access hospital affiliated with Community Hospital has four physicians on staff. Community Hospital Physician Profile April-June 20XX Physician No. No. of Discharges No. of Infections 1 29 6 2 20 2 3 11 2 4 14 1 The medical staff at Community Hospital has determined that the infection rate by physician should be 10 percent or lower. Using the information above, determine which of the following physicians did not meet the goal of an infection rate of 10 percent or lower.

Physicians 2 and 4 met the 10 percent or less goal; Physician 1: (6 × 100) / 29 = 20.69% Physician 2: (2 × 100) / 20 = 10.00% Physician 3: (2 × 100) / 11 = 18.18% Physician 4: (1 × 100) / 14 = 7.14%

Use the following scenario for questions 1 through 4. Miss Black is an inpatient coder who codes 40 hours per week. On the average she codes seven records an hour. She earns $17.00 per hour. Miss Green is an inpatient coder who codes 40 hours per week. On the average she codes six records an hour. She earns $14.50 per hour. What is Miss Black's: Annual salary? ________________ Records coded per day (8 hour work day)? _____________ Records coded per 40 hour work week (8 hour work day)? ______________ Records coded per year? __________________ Annual Unit Cost per record to code? __________________

What is Miss Black's: Annual salary? ($17.00 × 2,080) = $35,360 Records coded per day (8 hour work day)? (7 × 8) = 56 records coded per day Records coded per 40 hour work week (8 hour work day)? (56 × 5 days) = 280 records coded per week Records coded per year? (280 × 52 weeks) = 14,560 records coded per year Annual Unit Cost per record to code? Answer: $35,360 / 14,560 = $2.43 cost per record

Miss Black is an inpatient coder who codes 40 hours per week. On the average she codes seven records an hour. She earns $17.00 per hour. Miss Green is an inpatient coder who codes 40 hours per week. On the average she codes six records an hour. She earns $14.50 per hour. What is Miss Green's: Annual salary? ________________ Records coded per day (8 hour work day)? _____________ Records coded per 40 hour work week (8 hour work day)? ______________ Records coded per year? __________________ Annual Unit Cost per record to code? __________________

What is Miss Green's: Annual salary? ($14.50 × 2,080) = $30,160 Records coded per day (8 hour work day)? (6 × 8) = 48 records coded per day Records coded per 40 hour work week (8 hour work day)? (48 × 5 days) = 240 records coded per week Records coded per year? 12,480 records coded per year Annual Unit Cost per record to code? $30,160 / 12,480 = $2.42 cost per record

The HIM department has 200,000 active medical records and the department received 12,081 record requests during the year. The QI indicator for the health information management department is: "Eighty-five percent of record requests will be located within 15 minutes." Of the 12,081 records in the question above, 9,932 were located within 15 minutes of the time frame established as a QI indicator. Round to two decimal places. What was the request rate for the year? _____________________ What is the rate of compliance? _______________ Is the HIM department in compliance, yes or no?

What was the request rate for the year? _____________________ Answer: (12,081 × 100) / 200,000 = 6.04% What is the rate of compliance? _______________ Answer: (9,932 × 100) / 12,081 = 82.21% Is the HIM department in compliance? Yes or No