Introduction to Costing with PPM Amanda Oliver 2008 PPM User Conference.

Introduction to Costing Introduction to Costing with PPM with PPM

Amanda OliverAmanda Oliver2008 PPM User Conference2008 PPM User Conference

PowerHealth Solutions 2008 PPM User Conference

OverviewOverview

1.1.FeaturesFeatures

2.2.NavigationNavigation

3.3.General Ledger ProcessesGeneral Ledger Processes

4.4.ETVL ProcessesETVL Processes

5.5.Patient CostingPatient Costing


FeaturesFeatures

Java application, browser-based clientJava application, browser-based client

Embedded integration engineEmbedded integration engine

Embedded business rules engineEmbedded business rules engine

Reporting integrates with other Reporting integrates with other applicationsapplications

Easy and open access to all dataEasy and open access to all data

Web-based reporting and data analysisWeb-based reporting and data analysisOLAP functionalityOLAP functionality

Email and SMS alerts.Email and SMS alerts.


Navigation - Logging OnNavigation - Logging On


Navigation – Screen Map

Current userCurrent user

Menu barMenu bar

Current Functio

n

Current Functio

n

Function MenuFunction Menu

Current COA & GLCurrent COA & GL

Status barStatus bar

Screen areaScreen area

Screen buttonsScreen buttons

Tab functions

Tab functions


3. General Ledger Processes


GL Cost AllocationGL Cost Allocation

Centered around Chart of AccountsCentered around Chart of Accounts

Allows users to define hospital-wide Allows users to define hospital-wide standard costing rulesstandard costing rules

Hospital financial informationHospital financial informationStatistical information Statistical information ―― allocating allocating dollars from overhead (non direct dollars from overhead (non direct patient care areas) to patient care areaspatient care areas) to patient care areas

Enables detailed exceptions to the Enables detailed exceptions to the standards when desiredstandards when desired

Finalised General Ledger suitable for patient Finalised General Ledger suitable for patient costing (matching dollars to patient activity)costing (matching dollars to patient activity)

Built-in reconciliation and audit reports.Built-in reconciliation and audit reports.


General LedgerGeneral Ledger

Import financial informationImport financial informationCost Centres, Accounts, General LedgerCost Centres, Accounts, General Ledger

Import statistical data (overhead allocation)Import statistical data (overhead allocation)Bed Days, Admissions, FTE, Floor Area, Bed Days, Admissions, FTE, Floor Area, Cleaning Time, etcCleaning Time, etc

Set up Cost Allocation rulesSet up Cost Allocation rulesNon-Standard Cost Definitions (exceptions)Non-Standard Cost Definitions (exceptions)Reclass Rules (move GL values)Reclass Rules (move GL values)Define Allocation Statistics and Assign Define Allocation Statistics and Assign StatisticsStatisticsRoll-up Cost Outputs (if required)Roll-up Cost Outputs (if required)

Validate GL setup dataValidate GL setup dataRun Validation processes to check integrity Run Validation processes to check integrity of table dataof table data

Run GL cost allocation.Run GL cost allocation.


Importing Data - WorkshopImporting Data - Workshop

1.1.Select Select ImportImport at bottom of Cost Centre at bottom of Cost Centre Definitions screen.Definitions screen.

2.2.Click Click …… to browse for import file. to browse for import file.

3.3.Specify a reject file name and location.Specify a reject file name and location.

4.4.Data import:Data import:comma delimitedcomma delimited with with 11 header lines to skip, and header lines to skip, and“”“” as a text Qualifier as a text Qualifier

5.5.Fields pertaining to overwriting existing Fields pertaining to overwriting existing Cost Centre Definitions set to Cost Centre Definitions set to AlwaysAlways..


Importing Data - WorkshopImporting Data - Workshop

1.1.Select Select ImportImport at bottom of General at bottom of General Ledger screen – allows 1-3 import filesLedger screen – allows 1-3 import files

2.2.Click on ellipsis to browse for import Click on ellipsis to browse for import filefile

3.3.Specify a reject file name and locationSpecify a reject file name and location

4.4.Data import:Data import:comma delimitedcomma delimited with with 11 header lines to skip, and header lines to skip, and”””” as a text qualifier. as a text qualifier.


Setup Validation - Setup Validation - WorkshopWorkshop

1.1.Tick Tick Run Run boxes for processes boxes for processes 1-61-6

2.2.Select Select RunRun

3.3.View View Report Report for Cost Centre for Cost Centre DefinitionsDefinitions

4.4.In In Cost Centre Definitions screen Cost Centre Definitions screen enter details for new Cost Centreenter details for new Cost Centre

5.5.Tick Tick Run Run box for process box for process 1 1 and selectand select

6.6.Tick Tick Run Run boxes for process boxes for process 7.7.


4. ETVL Processes


ETVL ModuleETVL Module

Processes data from various information Processes data from various information systems into PPM patient databasesystems into PPM patient database

Data used by Patient Cost Allocation Data used by Patient Cost Allocation module to allocate dollar amounts from module to allocate dollar amounts from General Ledger ModuleGeneral Ledger Module

Patient Activity matched to dollars from Patient Activity matched to dollars from providing Patient Care Areaproviding Patient Care Area

Detailed patient costing.Detailed patient costing.


ETVLETVL

ExtractionExtractionImport data from source systemsImport data from source systems

TransformationTransformationPerform any necessary data transformationPerform any necessary data transformation

ValidationValidationEnsure data qualityEnsure data quality

Data LoadData LoadLoads and linksLoads and links data into PPM data data into PPM data repository.repository.


Create New InterfaceCreate New Interface

No limit to number of Interfaces No limit to number of Interfaces that can be implementedthat can be implemented

Sites decide what constitutes a Sites decide what constitutes a separate interfaceseparate interface

Data Junction translations are Data Junction translations are written for each interface.written for each interface.


Extraction and Extraction and TransformationTransformation

No pre-specified import formatNo pre-specified import format

ETVL performs all required field ETVL performs all required field calculations calculations ―― OBDs calculated from Ward OBDs calculated from Ward Transfer fileTransfer file

Allows users to compare imported values Allows users to compare imported values internal reference tables internal reference tables ―― ICD-10 ICD-10

Logic to link external feeder system data Logic to link external feeder system data to episode of care.to episode of care.


Extracting Data - WorkshopExtracting Data - Workshop

1.1.From From Interface Interface drop down menu, drop down menu, select select 2. 2. Patient Data LoadPatient Data Load

2.2.Select Select RunRun

3.3.Select Select Audit Audit and view results.and view results.


ValidationValidation

Two types of validation rules:Two types of validation rules:

FormulaFormulaUser-defined formula that combines User-defined formula that combines logical and conditional flowslogical and conditional flows

Reference tableReference tableValues for a given field checked Values for a given field checked against values stored in reference against values stored in reference table.table.


Define data fields as critical or non-critical for reporting

purposes

Define data fields as critical or non-critical for reporting

purposes

Review expected results for a single patient

during setup

Review expected results for a single patient

during setup

Validate data against internal reference tables

Validate data against internal reference tables

Validation RulesValidation Rules


Load - Episode MatchingLoad - Episode Matching


Loading Data - WorkshopLoading Data - Workshop

1.1. In In Load data Load data tab, select tab, select Load.Load.

2.2.View results displayed on View results displayed on

screen.screen.


SchedulerScheduler

Automate various processes within PPMAutomate various processes within PPM

Set up queue of batch jobs in pre-Set up queue of batch jobs in pre-defined orderdefined order

Run queue manually, or automatically at Run queue manually, or automatically at specified timesspecified times

Monitor progress of queue while runningMonitor progress of queue while running

Review log of jobs.Review log of jobs.


5.5. Patient Cost Allocation Patient Cost Allocation


Patient Cost Allocation Patient Cost Allocation ModuleModule

Brings together data from ETVL and Brings together data from ETVL and General Ledger ModulesGeneral Ledger Modules

Patient activity from ETVL matched to Patient activity from ETVL matched to dollars from providing Patient Care Area dollars from providing Patient Care Area in General Ledgerin General Ledger

Detailed and flexible cost allocation Detailed and flexible cost allocation methodologiesmethodologies

Weights and volumesWeights and volumes

Integrated reconciliations between Integrated reconciliations between General Ledger and Patient Cost General Ledger and Patient Cost Allocation processes. Allocation processes.


Patient CostingPatient Costing

Define and map Service CodesDefine and map Service Codes

Patient Database Patient Database

ConfigurationsConfigurations

Build Patient DatabaseBuild Patient Database

Allocate CostsAllocate Costs

Calculate Weighted ActivityCalculate Weighted Activity

Reports.Reports.


Database ConfigurationDatabase ConfigurationDatabase FilterDatabase Filter

Define filters for the Define filters for the database:database:

Date ranges for episode Date ranges for episode and service dataand service data

Patient typesPatient types

Specific hospitals.Specific hospitals.


Database ConfigurationDatabase ConfigurationDRG Weight FileDRG Weight File

Data imported via CSV fileData imported via CSV file

Allows for DRG weights to have an Allows for DRG weights to have an effective date rangeeffective date range

Manage situations where weight Manage situations where weight changes occur during financial yearchanges occur during financial year

Only needs to be imported into PPM Only needs to be imported into PPM once.once.


Database ConfigurationDatabase ConfigurationDetailed Weight FileDetailed Weight File

Data imported via CSV fileData imported via CSV file

Allows for Detailed Weights Allows for Detailed Weights against individual Service Codes against individual Service Codes within various patient care areaswithin various patient care areas

Internal weight studiesInternal weight studies

Allows effective date ranges.Allows effective date ranges.


Allocated by Cost OutputsAllocated by Cost Outputs

For each cost output defined in GL process, a For each cost output defined in GL process, a volume and allocation statistic can be definedvolume and allocation statistic can be defined

These default rules are applicable for each These default rules are applicable for each Cost Output across all Areas, UNLESS Cost Output across all Areas, UNLESS exceptions to these rules have been defined exceptions to these rules have been defined inin

Allocate by Patient Care AreaAllocate by Patient Care Area

Allocate by Detailed DefinitionAllocate by Detailed Definition

Useful as default to allocate expenditures Useful as default to allocate expenditures from an area that cannot be costed otherwise from an area that cannot be costed otherwise due to lack of activity.due to lack of activity.


Allocated by Cost OutputsAllocated by Cost Outputs


Allocated by Patient Care AreaAllocated by Patient Care Area

Optional screenOptional screen

Overrides Allocated by Cost OutputsOverrides Allocated by Cost Outputs

Each Patient Care Area can have Each Patient Care Area can have Volume and Weight measure assignedVolume and Weight measure assigned

Useful when an entire Area is costed Useful when an entire Area is costed the same across all Cost Outputsthe same across all Cost Outputs

Eliminates entering significant Eliminates entering significant amount of details when amount of details when unnecessary.unnecessary.


Allocated by Detailed Allocated by Detailed DefinitionDefinition

Optional screenOptional screen

Overrides Allocated by Patient Care Area Overrides Allocated by Patient Care Area and Allocated by Cost Outputsand Allocated by Cost Outputs

Enables defining of standard allocation Enables defining of standard allocation rules for each Patient Care Area and Cost rules for each Patient Care Area and Cost Output combination:Output combination:

Most detailed costing methodology Most detailed costing methodology level. level.


Weighted ActivityWeighted Activity

1.1. Select Select ReportReportSelect Select Costing Reconciliation by Costing Reconciliation by AreaArea

2.2. View how results link back to GL View how results link back to GL Cost AllocationCost Allocation

3.3. Reports:Reports:Costing Reconciliation by AreaCosting Reconciliation by Area

Weighted Activity ReconciliationWeighted Activity Reconciliation

Unweighted Activity ReconciliationUnweighted Activity Reconciliation

Patient Cost by AreaPatient Cost by Area

Weighted activity by Cost OutputWeighted activity by Cost Output

Average Cost per Service Code.Average Cost per Service Code.


Weighted Activity ReportWeighted Activity ReportAverage Cost Per Service CodeAverage Cost Per Service Code


Identify unusual Identify unusual cases to determine cases to determine why high costs why high costs incurred for such a incurred for such a short length of stayshort length of stay

Filter to exclude Filter to exclude factors such as factors such as patients transferred patients transferred to another to another organisation or organisation or deceased discharge deceased discharge statusstatus

Outputs – Digital DashboardOutputs – Digital Dashboard LOS < 2 Days, Total Cost > $10,000LOS < 2 Days, Total Cost > $10,000


Outputs – Digital Outputs – Digital DashboardDashboard


Outputs – Executive Outputs – Executive ReportingReporting


ConclusionConclusion

GL ProcessGL Process

Import financial and statistical dataImport financial and statistical data

Setup cost allocation rules including reclass Setup cost allocation rules including reclass rules and non-standard cost definitionsrules and non-standard cost definitions

Allows for GL setup validationAllows for GL setup validation

ETVL ProcessETVL Process

No pre-specified import formatNo pre-specified import format

ETVL performs all necessary calculationsETVL performs all necessary calculations

Logic to link external feeder systems data Logic to link external feeder systems data to correct episode of care.to correct episode of care.


ConclusionConclusion

Patient Cost AllocationPatient Cost Allocation

Define Service Codes and mappingsDefine Service Codes and mappings

Filter database:Filter database:specific date ranges of episode & service specific date ranges of episode & service datadata

patient types and/or patient types and/or

specific hospitalsspecific hospitals

Define specific cost allocation rules by Define specific cost allocation rules by ―― cost output, patient care area or detailed cost output, patient care area or detailed definitiondefinition

Detailed weighted activity reports easily Detailed weighted activity reports easily generated.generated.

Introduction to Costing with PPM Amanda Oliver 2008 PPM User Conference.

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